3.4%The US trade deficit contracted sharply in April as imports fell, signaling that trade could lead to economic growth this quarter for the first time in two years.
- The trade deficit plunged 19.1% to $87.1 billion. Imports of goods and services declined 3.4% to $339.7 billion as exports rose 3.5% to $252.6 billion.
- A record trade deficit reduced 3.23 percentage points from the GDP in Q1, leading to GDP contraction at a 1.5% annualized pace after growing at a strong 6.9% rate in Q4.
- Trade has contributed to the fall in GDP for seven consecutive quarters.
US merchandise imports dropped from a record in March, falling 4.4%, signaling a decline in inbound shipments of consumer goods, capital goods, automobiles, and industrial supplies.
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Source: Bureau of Economic Analysis