US trade deficit in goods and services was up 9.7% in May from a month earlier as trade volumes continued on their downward trajectory due to the Covid-19 pandemic, which meant many businesses were operating on a limited capacity or ceased operations completely.
The deficit amounted to US$54.6n for the month, up $4.8bn from a revised $49.8bn in April. Exports were $144.5bn, $6.6bn less than April, while imports were $1.8bn less at $199.1bn, according to trade statistics released by the Department of Commerce.
The largest deficit was recorded with China, rising $1.9bn to $27.9bn from $26bn in April. Exports increased $0.7bn to $10bn, while imports rose $2.7bn to $37.9bn.
Deficits were also recorded with the European Union ($12.7bn), Mexico ($4.2bn), Germany ($3.9bn), Japan ($3.2bn), Taiwan ($2.6bn), South Korea ($1.9bn), Singapore ($1.6bn), Italy ($1.4bn), Canada ($1.2bn), France ($1.1bn), India ($0.7bn), and Saudi Arabia ($0.1bn).
Surpluses for the month of May, meanwhile, were recorded with South and Central America ($1.9bn), Brazil ($0.4bn), OPEC ($0.4bn), United Kingdom ($0.2bn), and Hong Kong ($0.1bn).
US apparel imports fell by more than a fifth month-on-month in May as the global garment industry continued to crumble under the destructive weight of Covid-19. However, there was a resurgence in shipments from Central America and Mexico as retailers appear to have turned to those suppliers closest to home as stores started to reopen.
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By GlobalData
