The Bureau of Economic Analysis and the Census Bureau reported that the U.S. trade deficit declined from $47.59 billion in April to $46.51 billion in May. The trade deficit has trended somewhat higher so far in 2017, averaging $46.61 billion per month year to date relative to $42.07 billion for 2016 as a whole. In May, the increased trade deficit was the result of a slight rise in goods exports (up from $126.98 billion to $127.21 billion) and a decline in goods imports (down from $195.33 billion to $194.70 billion). In 2009 dollars, real goods exports increased from $123.76 billion to $124.95 billion, a new all-time high. At the same time, real goods imports increased marginally from $187.58 billion to $187.79 billion. Meanwhile, the service-sector surplus edged slightly higher, up from $20.77 billion to $20.99 billion, its highest point since August.
The underlying goods exports data were mixed. Exports increased for consumer goods (up $885 million) and automotive vehicles, parts and engines (up $619 million) but declined for foods, feeds and beverages (down $711 million), nonautomotive capital goods (down $450 million) and industrial supplies and materials (down $118 million). In contrast, there were sizable decreases in goods imports for consumer goods (down $1.47 billion) and automotive vehicles, parts and engines (down $722 million) that were enough to offset increases in nonautomotive capital goods (up $1.25 billion) and industrial supplies and materials (up $104 million).
For manufacturers, exports have trended in the right direction through the first five months of this year—a welcome development after weaker data in both of the past two years. Using non-seasonally adjusted data, U.S.-manufactured goods exports totaled $445.74 billion year to date in May, up 3.67 percent from $429.97 billion one year ago. This reflects better year-to-date figures in the top-six markets for U.S.-manufactured goods: Canada (up from $110.31 billion to $114.53 billion), Mexico (up from $93.67 billion to $97.44 billion), China (up from $42.40 billion to $49.53 billion), Japan (up from $24.94 billion to $27.17 billion), the United Kingdom (up from $22.62 billion to $22.83 billion) and Germany (up from $20.44 billion to $21.62 billion).
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