*EPF411 07/19/01
U.S. Trade Deficit Down in May to Lowest Level in 16 Months
(Dropping imports reflect slowing economy) (780)
By Bruce Odessey
Washington File Staff Writer
Washington -- The U.S. trade deficit dropped 11.4 percent in May to the lowest level in nearly 1-1/2 years as imports continued to fall broadly, reflecting the slowdown in the U.S. economic expansion.
The U.S. Department of Commerce reported July 19 that the May deficit amounted to $28,335 million, comprising a goods deficit of $34,398 million and a services surplus of $6,063 million. The last time the deficit was so low was in January 2000 at $26,359 million.
U.S. exports went up slightly in May to $87,731 million after dropping in April. U.S. imports dropped 2.4 percent in May, the second consecutively monthly decrease, to $116,066 million, down from the September 2000 record $125,666 million.
Big gains in U.S. exports occurred in drilling and oilfield equipment, aircraft, autos and pharmaceuticals. Big drops in imports were widespread including capital goods such as semiconductors, telecommunications equipment, computers and computer accessories, and aircraft engines.
Even though the volume of oil imports dropped in May, their value went up as the price per barrel increased to $22.62 from $21.65. The trade deficit with Saudi Arabia jumped to $910 million in May from $504 million in April.
The deficit with Japan plunged to $4,811 million in May from $6,430 million in April while that with China dropped slightly to $6,143 million. Other large May deficits occurred with Canada, $4,930 million; Mexico, $2,742 million; Germany, $2,616 million; Taiwan, $1,343 million; Italy, $1,192 million; and South Korea, $1,064 million.
Following are some key figures:
U.S. GOODS AND SERVICES EXPORTS, IMPORTS AND TRADE BALANCE
Millions of dollars, on a balance of payments basis, seasonally adjusted
Trade
balance Exports Imports
Jan.-Dec. 1999 -261,838 957,353 1,219,191
Jan.-Dec. 2000 -375,739 1,065,702 1,441,441
Jan.-May 2000 -147,080 432,787 579,867
Jan.-May 2001 -155,345 443,956 599,301
May 2000 -30,316 87,539 117,856
May 2001 -28,335 87,731 116,066
U.S. GOODS EXPORTS, IMPORTS AND TRADE BALANCE
Millions of dollars, on a balance of payments basis, seasonally adjusted
Trade
balance Exports Imports
Jan.-Dec. 1999 -345,434 684,553 1,029,987
Jan.-Dec. 2000 -452,207 772,210 1,224,417
Jan.-May 2000 -181,249 311,255 492,504
Jan.-May 2001 -184,575 319,940 504,515
May 2000 -36,910 63,151 100,062
May 2001 -34,398 62,828 97,226
U.S. SERVICES EXPORTS, IMPORTS AND TRADE BALANCE
Millions of dollars, on a balance of payments basis, seasonally adjusted
Trade
balance Exports Imports
Jan.-Dec. 1999 83,596 272,800 189,204
Jan.-Dec. 2000 76,468 293,492 217,024
Jan.-May 2000 34,169 121,532 87,363
Jan.-May 2001 29,230 124,016 94,786
May 2000 6,594 24,388 17,794
May 2001 6,063 24,903 18,840
U.S. GOODS EXPORTS, IMPORTS AND TRADE BALANCE, BY COUNTRY
Millions of dollars, on a Census basis, not seasonally adjusted
Bilateral May May
balance exports imports
Total -32,185 64,871 97,056
North America -7,672 23,812 31,484
Canada -4,930 15,196 20,126
Mexico -2,742 8,617 11,358
Western Europe -4,573 16,198 20,771
Euro Area -4,851 9,503 14,354
European Union -4,963 14,063 19,026
Austria -124 216 340
Belgium 312 1,254 942
Finland -172 127 299
France -909 1,681 2,590
Germany -2,616 2,602 5,218
Italy -1,192 843 2,035
Netherlands 705 1,584 879
Spain 17 492 475
Sweden -449 310 759
United Kingdom 446 4,046 3,600
Other EU -981 909 1,890
European Free Trade
Association 321 1,728 1,407
Norway -53 482 535
Switzerland 395 1,234 839
Other EFTA -21 12 33
Other Western Eur. 69 407 338
Eastern Europe, Former
Soviet Reps. -554 579 1,133
Hungary -206 66 272
Poland -2 70 71
Former Sov. Reps. -206 371 577
Russia -154 264 418
Other FSR -52 106 159
Other Eastern Europe -140 72 213
Pacific Rim -14,107 15,204 29,311
Australia 353 883 530
China -6,143 1,615 7,758
Japan -4,811 4,878 9,690
Newly Industrialized
Countries -1,791 5,788 7,580
Hong Kong 357 1,111 755
South Korea -1,064 1,701 2,765
Singapore 260 1,540 1,281
Taiwan -1,343 1,436 2,779
Other Pacific Rim -1,714 2,040 3,754
South/Central America -610 5,172 5,782
Argentina 132 400 268
Brazil 186 1,435 1,249
Colombia -210 296 506
Other S/C America -719 3,040 3,758
OPEC -4,143 1,659 5,801
Indonesia -633 223 855
Nigeria -837 71 908
Saudi Arabia -910 465 1,376
Venezuela -837 494 1,331
Other OPEC -926 405 1,332
Other countries -2,007 2,952 4,959
Egypt 207 298 91
South Africa -87 312 399
Other -2,127 2,342 4,469
NOTE: Data on a Census basis reflect movement of goods into and out of the United States through U.S. Customs Service stations. Balance-of-payments basis data adjust Census data to include products that bypass Customs, such as exports of military aircraft and imports of electricity from Canada.
(The Washington File is a product of the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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