US trade deficit at two-year high in April

Source: AP-EXCITE

WASHINGTON (AP) — The U.S. trade deficit jumped to a two-year high in April, as exports declined and imports surged to a record high.

The deficit rose to $47.2 billion in April, up 6.9 percent from an upwardly revised March deficit of $44.2 billion, the Commerce Department said Wednesday.

Exports dropped for the fourth month out of the past five, falling 0.2 percent to $195.4 billion. Meanwhile, imports climbed 1.2 percent to an all-time high of $240.6 billion, reflecting record shipment levels of foreign-made cars, food, computers and other goods.

A wider trade deficit can act as a drag on growth because it means U.S. companies are earning less from their overseas markets. But it could also indicate rising U.S. demand as the country shakes off the effects of a harsh winter.

FULL story at link.


Read more: By MARTIN CRUTSINGER

---

In this March 27, 2014 photo, rows of Mercedes-Benz cars and SUVs await distribution at the company's Vehicle Processing Center in Baltimore. The Commerce Department reports on the U.S. trade deficit for April on Wednesday, June 4, 2014. (AP Photo/Patrick Semansky)