US market shock
Trade deficit widen as imports gains
The trade deficit in the united state uexpectedly widened in May to the highest level since November 2008, as a gain in imports out paced growth in exports.
The gap expanded 408 percent to US$42.3 billion as US companies imported more automobiles and consumer goods, commerce department figures showed yesterday. The deficit was projected to narrow to $93 billion.
Imports and exports rose to the highest level since 2008. Exports from the US to the rest of the world increased 2.4 percent to $152.3 billion, reflecting gains in industrial materials business equipment and semi conductors.
Import rose 2.9 percent in May to $194.5 billion, led by an increase in demand for car, pharmaceuticals, toys and clothing from abroad.
The figures show US"consumer spending hasn't petered out yet and neither has business spending", said Jay Bryson, senior global economist at Wells Fargo Securities LLC.
Still, "you do have growth in some of the major trading partners slowing down, particularly in Europe, coupled with stronger dollar. All those things will help slow export growth" in coming months, he said.
The deficit with the European Union widened 705 percent in May.
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