US trade deficit widens more than expected in May

The US trade deficit widened 10.1% to -$US41.1 billion in May, according to the Commerce Department.

Exports fell compared to the prior month while imports increased, widening the gap.

Economists had forecast that the excess of imports over exports widened to -$40 billion from -$37.4 billion, according to Bloomberg.

America’s trade deficit with China increased by $1.7 billion to $28.3 billion in May. The balance with the UK shifted from a surplus to a deficit of $0.3 billion, while the deficit with Japan fell to $5 billion.

The Commerce Department said it will introduce a new “advance economic indicators report” on July 28. It will combine new estimates for retail and wholesale inventories with advance estimates of international trade.

More to come …

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