Via MishTalk

The Monthly International Trade in Goods and Services report by the Census Bureau shows the goods and services deficit was $55.5 billion in May, up $4.3 billion from $51.2 billion in April, revised.

The Econoday consensus was for the deficit to increase to $53.5 billion from a prior reading of $50.8 billion, now revised to $51.2 billion.

The $-55.5 billion result was outside the entire estimate range of $-54.7 billion to $-49.5 billion.

Exports, Imports, and Balance

  • May exports were $210.6 billion, $4.2 billion more than April exports.
  • May imports were $266.2 billion, $8.5 billion more than April imports.
  • The May increase in the goods and services deficit reflected an increase in the goods deficit of $4.4 billion to $76.1 billion and an increase in the services surplus of $0.1 billion to $20.6 billion.

By Country

Surpluses: The May figures show surpluses, in billions of dollars, with South and Central America ($4.1), Hong Kong ($2.6), Singapore ($0.6), Brazil ($0.5), Saudi Arabia (less than $0.1), and United Kingdom (less than $0.1).

Deficits: Deficits were recorded, in billions of dollars, with China ($30.1), European Union ($16.9), Mexico ($9.1), Japan ($6.0), Germany ($5.8), Canada ($3.6), Italy ($2.6), France ($2.1), India ($1.9), Taiwan ($1.5), South Korea ($1.4), and OPEC ($0.1).

Non-Petrol Exports

Year-to-Date Numbers

Year-to-date, the goods and services deficit increased $15.7 billion, or 6.4 percent, from the same period in 2018. Exports increased $5.1 billion or 0.5 percent. Imports increased $20.8 billion or 1.6 percent.

Small gains vs China were wiped out by losses elsewhere, notably Mexico and the EU.

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Trump is sure to howl about the EU.

Don’t worry, imports will plunge in a recession.

Mike “Mish” Shedlock