US goods trade deficit widens sharply in May on imports

WASHINGTON: The U.S. ​trade deficit ​in goods widened sharply in ​May as businesses boosted imports to avoid shortages and higher prices ‌related to ⁠the ⁠Middle East conflict, which could ​see economists cut their estimates for second-quarter gross ​domestic product.

The goods trade gap increased 27.4% to $105.8 ​billion last month, the ⁠Commerce Department's ‌Census Bureau said ​on ​Friday. Economists polled by ⁠Reuters had forecast the deficit at $85.0 billion. ​Imports of goods increased $10.9 ​billion to $313.4 billion, while exports fell $11.8 billion to $207.7 billion.

Trade had been a drag on gross domestic ‌product for two straight quarters. Growth estimates for the ​second ​quarter are converging ⁠around a 2.5% annualized rate.


The economy grew at a 2.1% ​annualized rate last quarter after expanding at a 0.5% pace in the October-December quarter.