(MENAFN- AFP) The US trade deficit widened modestly in May as exports fell more than imports amid a slowing global economy, the Commerce Department reported Tuesday.
The trade gap increased to $41.9 billion in May, up from a revised $40.7 billion in April, but less than the $42.5 billion expected in analyst forecasts.
Exports fell 0.8 percent in May to $188.6 billion, reflecting a sharp drop in goods exports, including civilian aircraft. That was marginally offset by a small rise in exports of services.
Imports fell 0.1 percent to $230.5 billion, dragged lower by a decline in goods imports such as drilling and oilfield equipment and industrial supplies.
Analysts said the report suggested the US trade picture was returning to normal after volatility caused by a West Coast ports strike that ended in February, allowing a massive backlog of exports and imports to flow again.
"The data are consistent with net exports being close to neutral for GDP in Q2, following a huge 1.9-point drag on the growth rate in Q1," said Jim O'Sullivan, chief US economist at High Frequency Economics.
Nevertheless, US trade overall slowed in the first five months of the year from the same period in 2014, as the world's largest economy encounters trouble selling to a slowing global economy and the strong dollar hampers exports.
Imports over the five-month period fell 2.1 percent to $1.18 trillion while exports dropped 2.7 percent to $943 billion.
That left the trade deficit 0.5 percent higher year over year.
With US crude oil production booming, the country's petroleum-based trade deficit continued to decline in May, falling to $5.8 billion as petroleum exports rose for the second straight month.
By region, the politically sensitive goods trade gap with China rose to $30.6 billion in May from $27.5 billion in April. The US has long criticized China for keeping its yuan currency undervalued to gain an unfair trade advantage.
The goods deficit with the 28-nation European Union increased to $13.4 billion from $11.9 billion in April.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.