US trade deficit widens more than expected in May

Imports and Exports | | MIC Customs Solutions |

The US trade deficit has seen a ten per cent increase during May 2016, as imports rose and exports fell during the month.

The US has seen its trade deficit grow wider during May, with the gap between imports and exports becoming broader than analysts had expected.

Figures from the US Commerce Department confirmed a $41.1 billion (€37.19 billion) trade deficit for the month, which exceeded the €40 billion figure forecast by economists polled by Reuters.

An increase in oil prices was cited as a key reason why the country's import bill rose higher in May, while imports from China increased by 13.8 per cent, due to a surge in sales for mobile phones from overseas.

Meanwhile, exports were constrained by the persistent strength of the dollar, with sales to key external trade partners such as Canada, Mexico, the EU and China all slipping compared to the previous month.

These figures meant that the country's trade deficit with China rose by 19.4 per cent to $29 billion, the largest difference since November 2015. The trade gap with the EU also widened by 13.5 per cent in May.