The eurozone trade deficit May widened to its largest level since January 2023, as energy imports stayed high and key goods surpluses shrank.
The bloc posted a sharp reversal from May last year, when it recorded a trade surplus of 15.0 billion euros. Exports in May edged up 0.1% from a year earlier. However, imports jumped 10.0% over the same period.
That gap left the January-to-May trade balance at just 3.3 billion euros this year. By contrast, the same period last year showed a surplus of 78.7 billion euros. Meanwhile, the seasonally adjusted balance showed a 5.0 billion euro deficit in May.
Energy Imports Drive eurozone trade deficit May
Energy remained the main drag on the trade picture in May. The energy trade deficit reached 30.3 billion euros, up from 29.0 billion euros in April. The source said that compares with the usual 18-20 billion euro range before the US-Iran conflict started.
At the same time, other major categories also weakened. The trade surplus in chemicals and related products fell to 18.4 billion euros in May from 20.5 billion euros in April. Likewise, the surplus in machinery and vehicles dropped to 4.4 billion euros from 6.3 billion euros a month earlier.
Smaller Goods Surpluses Add Pressure
Those moves largely explain why the eurozone trade deficit May widened from April. Although exports were little changed from a year earlier, imports rose much faster. As a result, the overall trade position deteriorated further.
The May reading marked the widest deficit since January 2023.
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Source: InvestingLive
