As oil prices march higher, the United States trade deficit is again widening as consumers spend more on gasoline, the government reported on Wednesday.þþThe gap between what the United States sells to the rest of the world and the goods and services the country buys from foreign markets grew for a second month in April, the Commerce Department reported. The deficit widened to $29.2 billion from $28.5 billion in March as falling imports leveled off slightly and exports to other countries continued to slump.þþThe United States imported $150.3 billion worth of goods and services in April and exported $121.1 billion. Exports fell $2.8 billion in April from a month earlier, or 2.3 percent, the lowest level since mid-2006. Imports fell a slightly smaller $2.2 billion.þþImports of crude oil rose $1 billion for the month, although the total value of crude-oil imports is down sharply this year compared with 2008. The United States also imported more consumer goods like pharmaceuticals, gems, jewelry and televisions.þþThe country’s exports of airplanes, industrial machines, automobiles and consumer goods fell for the month.þþThe balance of trade was roughly in line with economists’ expectations. þþ“The collapse in the global economy seems to be ending,” said James O’Sullivan, senior economist at UBS. “The global economy’s just not plunging the way it was. You’re not seeing outright growth yet, but it does look like the rate of decline has faded significantly.”þþEven with crude-oil prices crossing $70 as the global economy struggles to right itself, the trade deficit is nowhere near the monthly imbalances of more than $60 billion last year, when oil crested at $145 a barrel and gasoline cost more than $4 a gallon. But economists expect that the gap between imports and exports could continue to grow if oil heads higher.þþAs the financial crisis erupted in the autumn, trade between the United States and the rest of the world plummeted, and the trade deficit narrowed sharply as oil prices crumbled and demand for foreign-made goods dried up and consumers began to save money they once spent freely. þþ
Source: NY Times
