Click to Enlarge.
The US international trade deficit in goods and services increased to $49.4 billion in April from $42.3 billion in March, as exports and imports saw their largest monthly declines in history. It is the latest indicator that economy is struggling during the COVID-19 crisis according to Commerce Department data. The bad news increases if you consider the unemployment crisis.
- The April petroleum surplus ($3.2 billion) was the highest on record. Based on the current definition of the petroleum series which was established in 1978. Click here for more information.
- April exports of automotive vehicles, parts, and engines ($3.8 billion) were the lowest since March 1992 ($3.6 billion). Click here for more information.
- April imports from Canada ($15.0 billion) were the lowest since July 1999 ($14.6 billion).
The unemployment crisis is compounding the economic distress. Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, that increase in unemployment benefits and is only in place – thus far – through July 31, 2020. The Congressional Budget Office estimates that extending that increase for six months through January 31, 2021, would have the following effects:
- Roughly five of every six recipients would receive benefits that exceeded the weekly amounts they could expect to earn from work during those six months.
- The amount, on average, that recipients spent on food, housing, and other goods and services would be closer to what they spent when employed than it would be if the increase in unemployment benefits was not extended.
- The nation’s economic output would probably be greater in the second half of 2020 than it would be without the extension of the increase; in calendar year 2021, however, output would be lower than it would be without the extension.
- Employment would probably be lower in the second half of 2020 than it would be if the increase in unemployment benefits was not extended; in calendar year 2021, employment would be lower than it would be without the extension.
CBO says, “The estimated effects on output and employment are the net results of two opposing factors. An extension of the additional benefits would boost the overall demand for goods and services, which would tend to increase output and employment. That extension would also weaken incentives to work as people compared the benefits available during unemployment to their potential earnings, and those weakened incentives would in turn tend to decrease output and employment.”
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
US International Trade Deficit Soars in April to $50 Billion
Click to Enlarge.
The US international trade deficit in goods and services increased to $49.4 billion in April from $42.3 billion in March, as exports and imports saw their largest monthly declines in history. It is the latest indicator that economy is struggling during the COVID-19 crisis according to Commerce Department data. The bad news increases if you consider the unemployment crisis.
The unemployment crisis is compounding the economic distress. Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, that increase in unemployment benefits and is only in place – thus far – through July 31, 2020. The Congressional Budget Office estimates that extending that increase for six months through January 31, 2021, would have the following effects:
CBO says, “The estimated effects on output and employment are the net results of two opposing factors. An extension of the additional benefits would boost the overall demand for goods and services, which would tend to increase output and employment. That extension would also weaken incentives to work as people compared the benefits available during unemployment to their potential earnings, and those weakened incentives would in turn tend to decrease output and employment.”
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.