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| Version 1 | Version 2 |
|---|---|
| US trade deficit narrows in April | US trade deficit narrows in April |
| (20 minutes later) | |
| The US trade deficit fell unexpectedly in April, helped by the weak dollar. | The US trade deficit fell unexpectedly in April, helped by the weak dollar. |
| With the low value of the greenback making US exports more competitive and appearing to depress import demand, the deficit fell 6.2% to $58.5bn (£30bn). | With the low value of the greenback making US exports more competitive and appearing to depress import demand, the deficit fell 6.2% to $58.5bn (£30bn). |
| This compares with a revised $62.4bn in March, and average market expectations of an increase to $63.5bn in April. | This compares with a revised $62.4bn in March, and average market expectations of an increase to $63.5bn in April. |
| US exports rose by 0.2% to a record $129.5bn, said the Commerce Department, led by aircraft sales, while imports fell by 1.9% to $188bn. | US exports rose by 0.2% to a record $129.5bn, said the Commerce Department, led by aircraft sales, while imports fell by 1.9% to $188bn. |
| Chinese concern | Chinese concern |
| Despite the narrowing of the overall deficit, America's trade gap with China jumped 12.3% to $19.4bn, its highest level since January. | Despite the narrowing of the overall deficit, America's trade gap with China jumped 12.3% to $19.4bn, its highest level since January. |
| Analysts say this will undoubtedly cause displeasure on Capitol Hill, since many US congressmen argue that China is using unfair practices to boost its exports. | Analysts say this will undoubtedly cause displeasure on Capitol Hill, since many US congressmen argue that China is using unfair practices to boost its exports. |
| Many in the US maintain that since the Chinese government does not allow the yuan to trade freely, the country's exports are artificially cheap. | Many in the US maintain that since the Chinese government does not allow the yuan to trade freely, the country's exports are artificially cheap. |
| Analyst Lan Lancz of Lancz & Associates said that while the narrowing of the overall deficit was "a positive sign", the key issues remained the possibility of higher US interest rates and energy prices. | |
| The Federal Reserve next meets to consider US interest rates on 27-28 June. | |
| While most analysts expect rates to remain at 5.25% this time - where they have been for the past year - there is now some concern that the Fed may raise rates further towards the end of the year to control inflation. |