US trade deficit unexpectedly widened in May due to sharp decline in exports

In May, the difference between US imports and exports of goods increased by 11.1%, reaching $96.6 billion. This was the result of the strongest export decline since the start of the pandemic, while imports remained virtually unchanged.

Exports declined by 5.2%, primarily due to reduced shipments of industrial supplies, including crude oil. Falling energy prices further depressed total export values. Meanwhile, import levels held steady following April’s increase in foreign goods deliveries.

According to Bloomberg analysts, the widening trade deficit may dampen US economic growth in the second quarter. Prior to the data release, net exports were projected to contribute over two percentage points to GDP growth. These estimates may now be revised downward. Earlier in the first quarter, rising imports had already reduced GDP by 4.66 percentage points, the largest drag since 2020.