Thursday, July 3, 2014

Trade Deficit Dropped to $44.4 Billion in May

The U.S. trade deficit dropped by 6% in May to $44.4 billion, due to both increased exports and decreased imports. This is the first month all year the deficit has shrunk.

The report is generally positive. Exports grew 1.0% in May, to $195.5 billion. Exports are at an all-time high, driven by large gains in the goods exports. Imports declined 0.3% to $239.8 billion.

The real goods deficit, which is important for the calculation of GDP, declined to $52.0 billion. The declining real goods deficit points to an improved 2Q14 GDP.

Read the Census report.

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