The US trade deficit in May shrank to its lowest level since January 2000 as service industry exports hit record levels and imports declined for a second consecutive month, the US Commerce Department said today.
The unexpected dip came as US business, labour and farms groups step up their complaints about the strength of the US dollar against other major currencies, which they say are hurting US exports.
The May trade shortfall totaled $28.3 billion, shrinking $3.7 billion from April and much smaller than expectations. Analysts surveyed before the report had forecast the deficit to grow slightly in May.
US services exports edged slightly higher in May to hit a record $24.9 billion, mostly reflecting increases in travel, passenger fares and other private services, the Commerce Department said.
Exports of goods also rose slightly to $62.8 billion, led by increased sales of capital goods, automobiles and auto parts and consumer goods.
Imports totalled $116.1 billion, down $2.9 billion from April and the lowest level since the February 2000 figure of $114.8 billion.