WASHINGTON (Thomson Financial) - The US trade deficit rose 2.3 pct in May to 60.0 bln usd as Americans imported more and more expensive oil and other commodities.
Economists were looking for a 60.0 bln usd deficit, expecting imports to recover from their April slide. The April trade deficit had fallen to 58.7 bln usd revised, almost entirely on lower imports.
Because the report was in line with expectations, "economists won't be rushing to revise their Q2 GDP growth forecasts," said Patrick O'Hare at Briefing.com.
The Commerce Department said imports rose 2.3 pct or 4.2 bln usd. More than half of the dollar increase was in energy and metals products.
Petroleum imports rose 6 pct by volume and the average price per barrel of crude, at 59.36 usd, was the highest since 62.40 usd last September.
Another 1 bln usd of the higher imports was in capital goods, raising them to a record 36.7 bln usd.
The other big import increases were in consumer goods, particularly apparel and pharmaceuticals. Auto imports fell 508 mln usd.
Exports in May were up 2.2 pct or 2.9 bln usd. Most of that came from higher capital goods exports, including aircraft, electronics and machinery. Civilian aircraft exports were up 839 mln usd.
Robert Brusca at FAO Economics said "exports are finally showing some thrust over three months and capital goods exports, the category of US traditional export strength, are strong."
The dollar's weakness against the euro also seemed to be having an effect. US exports to the EU were up 4.5 pct or 900 mln usd in May.
The US trade deficit with China rose 3.3 pct in to 20.0 bln usd, but the deficit with Japan fell to 5.9 bln usd, its lowest level in three years.
Year-over-year, the US trade deficit is down 5.7 bln usd with exports up 11.1 pct and imports up 4.1 pct.
Though there was no surprise in the May numbers, Jeoff Hall at Thomson IFR Markets said he is "impressed by the continued improvement in the services surplus, last at $8.96 bln (a record) and growing at roughly $300 mln per month since January."
The ex-petroleum deficit improved slightly and, adjusted for inflation, the US trade deficit barely moved in May.
dennis.moore@thomson.com
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