US trade deficit narrows a tad less than expected in May despite jump in exports

According to the US Department of Commerce, the total trade deficit in goods and services shrank at a month-on-month pace of 1.3% in May to reach $85.5bn (consensus: -$84.9bn).

Exports were 1.2% higher versus April at $255.9bn while imports rose by 0.6% to $341.4bn.

May's decline in the total trade deficit was the result of a narrowing in the goods deficit of $2.9bn to reach $105.0bn and a decline in the services surplus of $1.7bn to $19.4bn.

Year-to-date however the total trade deficit had jumped by 38.4% from its levels of 2021 to reach $126.5bn.

Pacing growth in exports of goods were a $1.1bn rise in those of crude oil and of $1.0bn in those of non-monetary gold.

Exports of pharmaceutical preparations were also up by $1.0bn.

But those of soybeans fell by $1.9bn.

Goods imports meanwhile were led by those of pharmaceutical preparations ($1.0bn), crude oil ($0.9bn) and other petroleum products ($0.8bn).

Imports of travel services jumped by $1.0bn.