U.S. trade gap expands significantly in May
The U.S. trade deficit widened sharply in May as imports increased while exports declined, according to data released on Tuesday by the Commerce Department.
The trade gap expanded to $77.6 billion in May from a revised $54.6 billion in April.
Economists had forecast the deficit would rise to $78.7 billion after the previously reported April figure of $55.9 billion.
Imports climb while exports retreat
The larger trade deficit reflected a strong rebound in imports alongside weaker overseas sales.
Imports rose 3.3% month-on-month to $395.3 billion, while exports fell 3.2% to $317.7 billion, resulting in a substantially wider trade imbalance during the month.