The trade deficit in the U.S. unexpectedly jumped in May as imports climbed to the second-highest level on record, pointing to an economy that is overcoming higher taxes and government cutbacks.
The gap widened by 12.1 percent to $45 billion, the biggest since November, from $40.1 billion in April, Commerce Department figures showed today in Washington. The median forecast in a Bloomberg survey of 71 economists called for a $40.1 billion deficit. The value of imports at $232.1 billion was second only to a record $234.3 billion in March 2012.
Purchases of cellular phones, automobiles and fuel produced overseas add to signs demand from American consumers and businesses is picking up heading into the second half of the year. The report also showed exports stagnated, reflecting slack global growth as markets from China to Europe (EUGNEMUQ) struggle to gain momentum.
“We are seeing a pickup in demand on the consumer side that’s boosting imports,” said Robert Rosener, an economist at Credit Agricole CIB in New York. “The U.S. will keep growing faster than other areas of the world. We don’t see a huge rise in exports, but expect a big gain in imports.”