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In April, the United States’ trade gap widened slightly to $29.2 billion from March’s $28.5 billion. Most of the increase was driven by petroleum imports, but oil imports rose less than had been expected, according to a report recently issued by IHS Global Insight Chief U.S. Economist Nigel Gault.

Overall, exports fell 2.3 percent while imports dropped 1.4 percent. Adjusted for inflation, goods exports decline 4.3 percent and goods imports decreased 2.7 percent, a “disappointing result showing that world trade still is contracting,” said Gault in the report.

“[April’s] trade figures were disappointing in the sense that both export and import volumes tumbled again,” he said. “Exports were down in all major categories except food and beverages, while imports fell sharply for industrial supplies and capital goods.”
 
However, the steepest export declines “are behind us,” Gault believes. Given the weak state of overseas economies, the nation’s recovery won’t be export-led.

“As U.S. recovery does begin to take hold, it will mean an increase in imports as U.S. demand recovers,” said Gault. “As a result, the trade deficit will likely widen later this year.”