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US anounces surprising increase in trade deficit

The US trade deficit for goods and services widened to a record seasonally adjusted 37.6 billion dollars in May from a revised 36.1 billion in April, the Commerce Department said Friday.

In percentage terms, the trade deficit widened 4.1 percent. This is the largest trade deficit since records began in January 1992.

The trade deficit widened to a record level in May due to an increase in automobile and consumer goods imports.

The widening of the trade deficit was unexpected. A consensus of Wall Street economists predicted the deficit would narrow to about US$35 billion in May.

In April, the trade deficit was originally noted as a record US$35.94 billion.

In May, imports rose 1.8 percent to US$118.27 billion while exports rose 0.8 percent to US$80.64 billion.

The deficit with Japan widened to US$4.9 billion in May from US$4.7 billion a year earlier. The deficit with Japan was US$6.8 billion in April.

The trade deficit with China widened to US$8.1 billion in May from US$6.2 billion the same month one year ago. The trade deficit with China was US$7.6 billion in April.

In the overall May trade data, imports of autos, consumer goods and farm products hit record levels.

The goods-only trade deficit widened 3.3 percent to US$4.28 billion in May from the previous month. In the services-only category, the US surplus narrowed 2.8 percent to US$3.90 billion.

The May petroleum deficit widened 0.8 percent to US$8.32 billion. Excluding petroleum, the trade deficit widened 4.0 percent to a record US$32.0 billion.

The total cost of petroleum imports increased US$55.1 million, or 0.8 percent, to US$6.86 billion. The volume of oil imports fell to an average 9.31 million barrels per day in May, compared with 10.1 million in April.

With Mexico, the trade deficit widened to a US$3.34 billion in May from US$2.78 billion a year before and US$3.34 billion in April.

The trade deficit with Canada narrowed to 4.20 billion dollars, compared with US$4.50 billion the same month a year ago and US$4.14 billion in April.

The US trade deficit with the Newly Industrialized Countries (NICS) -- Hong Kong, South Korea, Singapore, and Taiwan -- widened to US$1.86 billion in May compared with US$1.79 billion in May 2001 and US$1.82 billion in April.

The deficit with the euro-area widened to US$6.09 billion in May from US$4.76 billion in the same month last year. In April, the US recorded a deficit of US$5.14 billion.
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