US goods trade deficit widens unexpectedly in May, imports higher

America's shortfall in trade on goods with the rest of the world widened last month as imports rose more quickly than expected, contrary to expectations for declines in both exports and imports.

In seasonally adjusted terms, the Commerce Department reported a widening in the US goods trade deficit, from -$70.92bn for April to -$74.55bn in May.

Imports increased by 3.7% month-on-month to reach $214.75bn, led by a 7.5% rise in those of automobiles, while exports were up by 3.0% to $140.2bn, led by a 6.1% jump in overseas sales of industrial supplies.

In the same report, Commerce said that wholesale inventories grew by 0.4% versus April to reach $678.7bn, as expected by economists.