Washington, DC, July 12, 2006--The trade deficit widened by 0.8% in May to $63.8 billion as both imports and exports set monthly records, the Commerce Department said Wednesday.
Reflecting a growing global economy, exports increased 2.4% to $118.7 billion, the biggest percentage gain since December 2004.
Record imports for petroleum, led by record prices and record quantities, helped to push up imports by 1.8% to $182.5 billion. The non-petroleum deficit fell to $43.2 billion, its lowest level in nine months.
Economists expected the May trade deficit to widen to about $64.7 billion. The deficit in April was revised insignificantly to $63.3 billion.
In the first five months of the year, imports are up 12.3% compared with the first five months of 2005. Exports are up 12.0% year-to-date. The year-to-date deficit is up 12.8% to $317.9 billion. Last year, the deficit totaled a record $716.7 billion.
