U.S. Trade Deficit Rose During May, Raising Concerns
WASHINGTON -- The U.S. trade deficit increase in May raised concerns about the strength of the nation's export market.</br></br>The trade gap grew to $7.38 billion from April's revised deficit of $7.06 billion, the Commerce Department said. It was the third month in a row that the trade gap has widened, and placed it at its largest level in a year and a half.</br></br>The May deficit is troublesome because of a substantial drop in exports, which have been largely credited with helping to lead the nation back to economic health. But as other nations struggle with their own economic problems, their demand for U.S. goods slackens.</br></br>Exports totaled $35.49 billion in May, down 2.5% from April. The drop reflected decreases in overseas sales of foods, capital goods and automotive vehicles, parts and engines.</br></br>The drop in capital goods reflected a large decline in sales of civilian aircraft, which fell more than 28%.