Primarily reflecting a jump in the value of imports, the Commerce Department released a report on Wednesday showing that the U.S. trade deficit widened by more than expected in the month of May.
The report said the trade deficit widened to $41.1 billion in May from $37.4 billion in April. Economists had expected the deficit to widen to $40.0 billion.
The wider than expected deficit was partly due to the jump in the value of imports, which surged up by 1.6 percent to $223.5 billion in May from $220.1 billion in April.
Imports of non-monetary gold, crude oil, and consumer goods showed notable increases, more than offsetting a decrease in imports of civilian aircraft.
On the other hand, the Commerce Department said the value of exports edged down by 0.2 percent to $182.4 billion in May from $182.7 billion in April.
The modest drop in the value of exports was partly due to reduced exports of civilian aircraft, computer accessories, and automotive vehicles and parts.
Despite the wider deficit in May, Andrew Hunter, Assistant Economist at Capital Economics, said, "Net trade may still have provided a small boost to second-quarter GDP growth."
"Either way, with consumer spending on course for a gain of at least 4% annualized, GDP growth should have been close to 3%," he added.
The Commerce Department also said the goods deficit widened to $62.2 billion in May from $58.6 billion in April, while the services surplus dipped to $21.1 billion from $21.2 billion.
For comments and feedback: editorial@rttnews.com