US Trade Deficit Narrow by $20B to Below-Estimate Levels in April

Source: Census Bureau

The US recorded a trade deficit of $105.9 billion in April, a decline of $20.0 billion from March, and below estimates of a $114.9 billion shortfall. SPY is up +1.30%, DXY is down -0.14%.

• The narrower trade deficit in April reflected a monthly decline of $14.8 billion in imports which hit $279.9 billion. Exports increased by $5.2 billion to $173.9 billion.
• The decline in trade deficit happened when the advance wholesale inventories increased by 2.1% to $860.8 billion. The inventories were 23.8% higher than the prior year. 
• The retail inventories also rose to hit $696.3 billion, 0.7% more than in March. The inventories were 15.0% higher than the prior year.
• With $20 billion, the decline in the US trade deficit was the most since 2009. The deficit was partly attributed to the lockdowns in China, which hit imports, while the exports were at a record level.