The April merchandise trade report indicated a rise in the trade deficit to $0.567 billion from a minimal shortfall in March of $0.003 billion, which had been previously been reported as a surplus of $0.020 billion. The report deviated little from market expectations of an April deficit of $0.500 billion.
The deterioration in the trade balance occurred largely as a result of imports rising $0.49 billion (1.2%) though abetted by a $0.07 billion (0.2%) fall in exports.
The increase in imports was led by gains in energy products ($0.22 billion), motor vehicles and parts ($0.13 billion) and metal and non-metallic mineral products ($0.12 billion). These increases were disappointingly offset by a $0.13 billion drop in machinery and equipment imports.
The marginal drop in overall exports resulted from declines in metal ores and non-metallic minerals ($0.24 billion), energy products ($0.16 billion) and electronic equipment ($0.11 billion) being almost fully offset by a $0.48 billion surge in metal and non-metallic mineral products that reportedly reflected strength in precious metals.
