US goods trade deficit narrows in May

THE US trade deficit in goods narrowed in May as exports increased, suggesting that trade could contribute to economic growth this quarter for the first time in nearly two years.

The goods trade deficit fell 2.2 per cent to US$104.3 billion, the Commerce Department said on Tuesday.

Goods exports rose US$2.0 billion to US$176.6 billion. Imports of goods slipped US$0.4 billion to US $280.9.

A record trade deficit weighed on the economy in the first quarter, resulting in gross domestic product declining at a 1.5 per cent annualised rate.

Trade has subtracted from GDP for seven straight quarters. REUTERS