Trade Deficit Soars on Higher Oil Imports

Washington, DC, July 12, 2011 -- The U.S. trade deficit swelled in May to the highest level in more than two and a half years, due to a big increase in oil imports.

The Commerce Department said Tuesday that the deficit increased 15.1% to $50.2 billion in May, which is the largest imbalance since October 2008.

Exports declined 0.5% to $174.9 billion. Imports rose 2.6% to $225.1 billion. Oil prices have fallen since May, so the effect of higher prices should ease some in the coming months.

The deficit is running at an annual rate of $563.2 billion. That's 12.6% higher than the 2010 imbalance.