|
The
increase in the trade gap to $41.9 billion, announced on Tuesday
by the Commerce Department, was less than analysts had expected.
That suggests Wall Street economists, who expected a $42.6
billion deficit, might raise slightly their forecasts for
economic growth in the second quarter.
But the drop in exports in May highlights a change in America's
recovery from recession in which the economy has relied more on
domestic drivers like construction and services, rather than
export-led industries such as manufacturing.
Led by a drop in overseas sales of U.S.-made capital goods,
exports fell $1.5 billion in May, or 0.8 percent, to $188.6
billion. Imports fell by about $300 million, or 0.1 percent, to
$230.5 billion.
Since the middle of last year when the Federal Reserve made
clear it was planning to raise interest rates, the dollar has
strengthened, making U.S. exports less competitive.
Also since then, Europe's economy has been on shaky ground and
the European Central Bank has eased monetary policy, weakening
the euro's value against the dollar. European policymakers are
currently fighting a debt crisis in Greece that threatens to rip
apart the continent's monetary union.
Exports of goods to Germany fell 6.0 percent in May from the
prior month, according to non-seasonally adjusted figures. Sales
fell 4.2 percent to France, 2.1 percent to Mexico and 3.0
percent to Japan.
The U.S. economy contracted at a 0.2 percent annual rate in the
first quarter, hit by bad weather, a strong dollar, spending
cuts in the energy sector and disruptions at West Coast ports.
Other economic data, including figures on hiring and consumer
spending, have pointed to a rebound during the second quarter,
and a firming domestic economy could encourage the Fed to raise
rates later this year.
In May, the drop in imports came as purchases from China rose
9.5 percent. That could further fan criticism from U.S.
manufacturers that Chinese firms are using a cheap currency and
unfair subsidies to gain market share in America.
At the same time, U.S. net imports of oil fell to $5.8 billion
in May, the lowest level since 2002.
(Reporting by Jason Lange; Editing by Paul Simao)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
