Citi says US April trade data shows strong investment demand

Investing.com -- Citi reported that the US trade balance remained largely unchanged in April at -$55.9 billion, with increases in both nominal exports and imports. The bank said April trade data is likely modestly positive for second quarter GDP.

Goods exports rose 4.1% month-over-month while services exports fell 0.4%. Goods imports increased 2.1% and services imports rose 1.7%. In real terms, goods exports rose 0.8% month-over-month while goods imports fell 0.1%.

The goods trade balance with Canada widened from -$3.7 billion to -$6.2 billion. The goods trade balance with China tightened to $12.0 billion, while the balance with the European Union tightened to -$7.2 billion.

The effective tariff rate based on imports and customs duty collections remained essentially unchanged at 6.7% as of April.

Capital goods exports rose 5.5% in real terms, partly reflecting exports of US-produced aircraft and stronger electrical equipment exports possibly related to international demand for AI-related investment goods. Exports of gold fell from elevated levels.

Real capital goods imports continued to increase due to AI investment. Computer imports rose after a temporary decline in March, with telecommunications and electrical equipment imports also continuing to increase.

Real consumer goods imports remained soft this year. Real imports fell across most categories, including industrial supplies, consumer goods, and automobiles.

Exports of oil and related products increased substantially in nominal terms reflecting higher prices. Weekly data on barrels of oil exported suggest a further increase in May exports.

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