US trade deficit expands less than expected in May
There have been concerns that export growth would weaken as global demand eased
THE US trade gap grew slightly less than expected in May, to the widest level since late 2022, government data showed on Wednesday (Jul 3), as exports and imports both slipped.
The overall deficit grew to US$75.1 billion, from a revised US$74.5 billion in April, said the Commerce Department.
While this was the largest since October 2022, analysts had initially expected the gap to be the biggest in two years.
Even though US consumption has been resilient in the face of higher interest rates, there have been concerns that export growth would weaken as global demand eased.
Exports fell more than imports in May, with outbound shipments coming in at US$261.7 billion – down by US$1.8 billion from April.
This came as exports of industrial supplies and materials fell by US$2.1 billion.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Imports were US$1.2 billion less than in April, at US$336.7 billion, the report added.
Among segments, imports of consumer goods retreated by US$2.0 billion – with a decrease in areas like pharmaceutical preparations only partially offset by increases in cell phones and other household goods.
Imports of autos and parts also fell by US$1.5 billion, said the Commerce Department.
The US goods deficit with China, which had been a point of contention between the world’s two biggest economies, increased by US$1.9 billion to US$23.9 billion in May. AFP
Share with us your feedback on BT's products and services
