The U.S. trade deficit
widened to a record in May as demand rose for imported
automobiles, clothing and televisions, the government said.
The $37.6 billion gap in goods and services trade followed a
$36.1 billion deficit in April that was wider than previously
estimated, the Commerce Department said. Imports of motor vehicles
and parts and consumer goods were the highest ever. Exports rose.
The imbalance may have kept growing last month amid increased
spending by U.S. consumers. At the same time, the economic
recovery among trading partners shows signs of being sustained,
one reason profits at companies such as Coca-Cola Co. are
improving.
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“There is momentum in the economy and I would expect trade
to continue to grow,” said Robert T. McGee, senior strategist at
UFJ Bank in New York. He said the threat of a dockworkers’ strike
on the U.S. West Coast may also have led companies to stockpile
imported goods.
The consumer price index rose 0.1 percent in June after no
change in June, the Labor Department said. Excluding energy and
food prices, the core index rose 0.1 percent, the smallest
increase in three months, after rising 0.2 percent.
Economists had expected the trade deficit to narrow to
$35.4 billion in May from April’s previously reported gap of $35.9
billion, according to the median estimate of 54 forecasts in a
Bloomberg News survey.
