US Trade Deficit Grows due to Increased Imports

The trade deficit widened sharply in May, as stronger U.S. demand pulled in more imports from China and the rest of the world and sluggish growth abroad pushed exports lower, a U.S. government reported showed on Wednesday.

The trade gap swelled more than 12 percent to $45.0 billion from a revised $40.1 billion in April, the biggest month-to-month increase in two years, the Commerce Department said.

Analysts surveyed before the report had expected the May deficit to narrow slightly to $40.1 billion, from the previously reported April figure of $40.3 billion.

The widening of the trade gap could prompt analysts to lower their estimates of second-quarter U.S. growth.

via Reuters

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