The April 2011 U.S. trade deficit decreased -$3.1 billion to $43.7 billion. This is a -6.7% monthly drop in the trade deficit and the largest since October 2010. Exports were the highest on record. Oil imports were the highest on record and the drop in imports from Japan also was the largest decrease on record. The tsunami hit Japan on March 11th.
The March 2011 monthly trade deficit was revised downward by -$1.4 billion to $46.8 billion. $26.1 billion of the April goods trade deficit is oil related, $4.2 billion less than 1 month ago, and 45.6% of the total goods trade deficit. Services have surplus of $14.4 billion and increased $0.2 billion last month.
The below graph shows the monthly percentage change in Japanese imports, not seasonally adjusted. Which is worse, a devastating earthquake, tsunami and corresponding nuclear disaster greater than Chernobyl, or the financial crisis? Amazing how close the two are in percentage drops. The April 2011 decline was -25.5%, and from the recession, the February 2009 drop was -21.5%.
