The US trade deficit unexpectedly narrowed in May as the cheaper dollar spurred gains in exports, helping make up for the soaring cost of imported oil.
The gap between imports and exports shrank 1.2 per cent to $59.8 billion from a revised $60.5 billion in April that was smaller than previously estimated, the Department of Commerce said today in Washington.
Growth in overseas markets and a weaker dollar are helping lift exports even as oil prices, which reached a record last week, are pushing up imports.
A shrinking trade gap is one of the few economic bright spots remaining as an extended housing slump and cooling consumer spending weigh on the economy.
A separate government report today showed prices of imported goods rose 2.6 percent in June from the previous month, the same as in May.
The Labour Department said import prices climbed 20.5 per cent from a year before. Exports increased 0.9 per cent to $157.5 billion, as sales of foods, aircraft and chemicals strengthened.
Imports rose 0.3 per cent to $217.3 billion after increasing 4.6 per cent the prior month. The import figures reflected a record $31.2 billion in purchases of foreign crude oil, before seasonal adjustments, as well as higher demand for capital goods and consumer items such as televisions, apparel and toys.
Car imports fell $842 million to $20.6 billion.
Bloomberg