2d Trade Deficit Hits U.S. in May: 2d Trade Deficit Hits U.S. in May
The United States unexpectedly suffered its second monthly trade deficit of the year in May, the Commerce Department announced yesterday.</br></br>The country imported $32.2 billion more in goods during the month than it sold abroad on a seasonally-adjusted basis.</br></br>In March there had been a deficit of $158 billion, the first in five years. But officials regarded it as a fluke, due largely to dock and copper strikes and hedge buying against a steel shutdown later this year. They confidently ex- pected the trade would swing back into a favorable balance and stay that way. Their forecase was borne out in April, which had a $248 million surplus.</br></br>Thust he May shortfall came as a surprise, with continued hedge imports of steel the only unusual circumstance. ÛÏThereÛªs no doubt that our trade position has deteriorated,Û said an Administration official, who added that further monthly deficits cannot be ruled out.</br></br>has relied on the NationÛªs traditional export surplus to keep the deficit in international payments from becoming even deeper than it is. This favorable trade balance offsets a large part of the dollar outflow due to overseas investment, lending, military expenditures and foreign aid.