Posted by Marcelo Perez

For the month of May, imports contracted, while export demand showed relative strength, as the worldwide economic contraction continued to wreak havoc on international trade. According to the monthly trade balance report released today, exports rose 1.6% in May, to a seasonally-adjusted $123.3 billion. That’s the biggest gain since June of 2008. Imports fell 0.6%, with consumption of foreign goods and services falling to a seasonally-adjusted $149.3 billion. 

The trade deficit, net imports and exports, has fallen off a cliff during the slowdown. And in May it was no different, as the deficit decreased by 9.8% to $26.0 billion. This is the lowest level since November 1999.

While US consumers continue to cut back on spending at a rapid rate, foreign consumption of US goods is quietly picking up. While this may be the result of a weakening dollar, it also shows strength in the overseas markets, especially the Asian markets.

Report Details

Via MarketWatch:

U.S. exports of goods increased 2.6% to $82.1 billion in May, the government’s data showed. Exports of services fell slightly.

Exports of industrial materials increased 89.8% to $23.2 billion and exports of foods and feeds climbed by 3.3% to $7.89 billion.

Exports of capital goods rose 0.4% to $31.0 billion, led by industrial machines, generators and industrial engines.

Exports of consumer goods increased 1.9% to $12.1 billion. Exports of autos and auto parts fell 7.6%.

Meanwhile, imports of goods slipped 0.5% to $119.4 billion. This is the lowest level since April 2004. Imports of services also fell slightly.

Imports of industrial materials declined 1.9% on the month, reaching $33.06 billion. Petroleum imports fell 11.0% in May to $13.29 billion. The drop came despite a rise in the price of imported oil. The average price of imported crude oil rose by $4.61 a barrel to a price of $51.21.

The United States imported, on average, 8.4 million barrels of crude oil each day in May. This is the lowest average since last September.

Non-petroleum imports fell 4.7% to $22.70 billion.

Imports of autos and auto parts fell 2.3% to $10.23 billion.

Imports of capital goods rose 0.9% to $28.93 billion, led by computer accessories and telecommunications equipment.

Imports of consumer goods dropped 0.2% to $35.47 billion, led by drugs.

May’s imports of foods and feeds rose 0.8% to $6.78 billion.

Read the Full Report.