Balance of Trade

Previous: $-60.6B

Forecast: $-75.2B

The balance of trade measures the difference in value between imported and exported goods and services. Higher than expected balance of trade is bullish, while lower than expected balance of trade is bearish.

The US trade gap narrowed slightly to $69 billion in May of 2023 from $74.4 billion in April, in line with market expectations. Imports went down 2.3% to $316.1 billion, the lowest level since December 2021, led by falls in purchases of pharmaceutical preparations, cell phones, nonmonetary gold, organic chemicals, transport and travel while increases were seen for artwork and computers. Meanwhile, exports edged 0.8% lower to $247.1 billion, dragged down by purchases of soybeans, crude oil, natural gas, and charges for the use of intellectual property. On the other hand, shipments went up for passenger cars, travel and transport. In May, the biggest trade deficits were recorded with China ($-24.9 billion), the European Union ($-16.5 billion), Mexico ($-13.5 billion), Vietnam ($-8.1 billion) and the highest surpluses with the Netherlands ($3.9 billion), Belgium ($1.7 billion), Hong Kong ($1.6 billion), Australia ($1.2 billion), the United Kingdom ($1.2 billion), Brazil ($1 billion). source: Bureau of Economic Analysis (BEA)