US Trade Deficit Fell in May by 2.3%
The US trade deficit declined in May, as exports increased to the highest level in two years, but trade may still affect economic growth in the second quarter.
Data from the Commerce Department showed that the trade deficit decreased by 2.3% to $46.5 billion. Economists predicted that the trade deficit would drop to 46.2 billion dollars in May. Given inflation, the trade deficit narrowed to $62.8 billion from $63.8 billion in April.
Nevertheless, the real trade deficit in April and May averaged $63.3 billion, which exceeds the average for the first quarter of 62.2billion dollars. This suggests that trade will depend on gross domestic product in the second quarter.