May 2015 International Trade (General)

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The goods and services deficit was $41.9 billion in May, up $1.2 billion from $40.7 billion in April. Exports were $188.6 billion, $1.5 billion less than in April. Imports were $230.5 billion (-$0.3 billion). The May increase in the goods and services deficit reflected an increase in the goods deficit of $1.2 billion to $61.5 billion, and an increase in the services surplus of less than $0.1 billion to $19.6 billion.

The May figures show surpluses, in billions of dollars, with South and Central America ($4.2), Brazil ($0.9), OPEC ($0.3), and Canada ($0.2). Deficits were recorded, in billions of dollars, with China ($30.6), European Union ($13.4), Germany ($6.4), Japan ($6.4), Mexico ($4.1), Italy $2.5), South Korea ($2.4), India ($2.0), France ($1.5), Saudi Arabia ($0.4), and United Kingdom ($0.1).

* The deficit with China increased $3.1 billion to $30.6 billion. Exports decreased $0.7 billion to $9.6 billion and imports increased $2.4 billion to $40.2 billion.

* The deficit with the European Union increased $1.4 billion to $13.4 billion. Exports increased $1.0 billion to $22.6 billion and imports increased $0.4 billion to $36.0 billion.

Year-to-date, the goods and services deficit increased $1.1 billion, or 0.5 percent, from the same period in 2014. Exports decreased $26.5 billion or 2.7 percent. Imports decreased $25.4 billion or 2.2 percent.

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On a global scale, data compiled by the Netherlands Bureau for Economic Policy Analysis showed that world trade volume increased by 0.3% in April (+1.5% year-over-year) while prices fell by 0.6% (-15.5% YoY).

The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.