US Goods Trade Deficit Widens to Biggest in More Than a Year

The U.S. goods-trade deficit expanded in May to its largest point in over 13 months, driven by a decrease in exports and an increase in imports. The deficit reached $99.4 billion in May, a rise from $91.6 billion in April, according to data released by the Commerce Department on Tuesday. This marks the widest gap since April 2023. Exports of goods declined by 1.3% to $171.7 billion, with notable drops in industrial supplies and materials, as well as non-automotive capital goods. Conversely, imports of goods saw a 0.6% increase, reaching $271.1 billion. This rise in imports was primarily fueled by higher inflows of non-automotive capital goods and consumer goods. The widening deficit suggests a potential drag on U.S. economic growth in the second quarter, as net exports are a component of Gross Domestic Product.