2024-07-06 08:08:42
The US Commerce Department data, released on Wednesday, showed that the gap in trade in goods and services grew by 0.8% from the previous month to $75.1 billion, the largest since October 2022.
The median estimate in a Bloomberg survey of economists was for a deficit of $76.5 billion.
The value of exports of goods and services fell by 0.7%, while imports fell by 0.3%, figures that were not adjusted for inflation.
The widening trade deficit is expected to weigh on the nation’s GDP for the second straight quarter. Before the latest data, the Atlanta Fed’s growth forecast showed the trade sector would drag down second-quarter GDP by about a percentage point.
The decline in shipments of goods to overseas customers was the smallest since November, driven by declines in the value of industrial goods, aircraft and automobiles. Moderate economic growth in foreign markets and a strong U.S. dollar are limiting demand for U.S. goods and services.
Meanwhile, U.S. appetite for imported goods may continue to slow amid restrained consumer spending and a recent rebound in retail inventories. The trade report showed imports of goods fell 0.4 percent in May.
On an inflation-adjusted basis, the goods trade deficit widened to $94.5 billion in May, the largest in more than a year.
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2024-07-06 08:08:42