By Gregory Robb, CBS Marketwatch.com Last Update: 9:59 AM ET June 14, 2004
WASHINGTON (CBS.MW) -- Defying the predictions of economists, the U.S. trade gap surged further into record territory in April, it was reported Monday.
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The nation's trade deficit widened by 3.8 percent in April to $48.3 billion, the Commerce Department said. This marked the second straight month for a record trade gap. Read full report.
The widening of the trade deficit was unexpected. Wall Street economists had predicted that the trade deficit would narrow to $45.1 billion.
Meanwhile, the U.S. trade deficit for March was revised to $46.7 billion from the $46.0 billion initially estimated last month.
Some economists said the trade gap would be a drag on second-quarter growth in gross domestic product, but others cautioned that it was too soon to say as April is the first month of the reporting period.
Imports continued to increase while exports fell in April after two impressive monthly gains.
Imports rose 0.2 percent to a record $142.3 billion.
Exports fell 1.5 percent to $93.9 billion. This is the largest decline in exports since August 2003.
"The drop in exports would be of some concern had it not been for the surge in March," said Lynn Reaser, chief economist at Banc of America Capital Management. Exports rose 3.1 percent in March and 4.1 percent in February.
"The drop in exports looks like a temporary decline as we are now benefiting from a weaker value of the dollar and general strength overseas," Reaser said.
Imports of goods alone rose 0.2 percent to $118.9 billion. Imports of non-petroleum goods, autos, parts and engines, and consumer goods set new records.
Exports of goods alone fell 2.3 percent to $65.8 billion. The largest decline game in exports of capital goods, which fell 2.3 percent to $27.1 billion. Exports of civilian aircraft fell 20.4 percent to $1.7 billion.
