U.S. advance goods balance likely to have widened in May

The U.S. advance goods balance in May is expected to have broadened by around USD 2 billion to -USD 59.8 billion, said Societe Generale in a research report. Exports of goods are likely to have changed slightly in May; however, imports are expected to have grown by around USD 2 billion. Crude oil imports changed a little last month as compared with April. However, oil price rise in the period is expected to have resulted in pushing up the industrial supplies category.

In the mean time, automotive vehicles and parts’ imports might have recovered slightly last month, following the decline to the lowest level in March and remained at around that level in April. Consumer goods are also expected to have grown by around USD 1 billion, according to Societe Generale.

Consumer goods were volatile since February because of problems relating the Chinese Lunar Year. Assuming the forecast comes true, the U.S. trade balance is expected to be on track to add many tenths of a percentage point to the second quarter of GDP, added Societe Generale.