Key facts
- The U.S. trade deficit widened to $77.6 billion in May.
- This is the widest trade deficit in 14 months.
- Exports of industrial supplies and consumer goods fell.
- Imports increased in May.
- The widening deficit is expected to negatively impact Q2 GDP growth.
The United States experienced a significant widening of its trade deficit, reaching $77.6 billion in May. This figure represents the largest trade deficit recorded in 14 months. The expansion was primarily driven by a dual movement: a decline in exports, particularly of industrial supplies and consumer goods, and a simultaneous rise in imports. This trend is projected to have a negative impact on the U.S. economy's performance in the second quarter, with expectations that it will reduce Gross Domestic Product (GDP) growth. The specific categories of goods contributing to this shift include industrial supplies and consumer goods, which saw their export values decrease, while overall imports increased.