The US Trade Deficit Narrows in May

Imports Fall to Lowest Level Since Late 2021

The US trade deficit narrowed in May as imports fell to their lowest level since late 2021 as higher borrowing costs slowed domestic demand.

The Commerce Department said today, Thursday, that the trade deficit narrowed by 7.3% to $69 billion. Imports of goods and services fell 2.3% to $316.1 billion, the lowest level since October 2021.

Imports of manufactured goods and materials, including crude oil and foodstuffs, have fallen sharply. Oil imports hit their lowest level since August 2021.

Exports Also Decline

Exports fell 0.8% to $247.1 billion. Merchandise exports fell 1.5% to $164.8 billion.

Exports of manufactured goods and materials recorded their lowest level since September 2021, while food exports recorded their lowest level in about two years. Oil exports fell to their lowest level since December 2021.