US trade deficit widens

The U.S. trade deficit widened sharply in May to the highest level in six months as a weak global economy depressed U.S. exports while imports of autos and other non-petroleum products hit a record high, the government reported Wednesday. The Commerce Department said the deficit in trade of goods and services widened more than 12 percent to $45 billion from $40.1 billion in April, the biggest monthly increase in two years and the largest trade imbalance since last November. Analysts had expected a much smaller May deficit of about $40 billion. The widening of the trade imbalance could prompt economists to lower their estimates of second-quarter U.S. growth. Exports fell 0.3 percent to $187.1 billion in May, as U.S. farm products fell to the lowest point in more than two years, more than offsetting increases in autos, auto parts, and capital goods. U.S. exports have been hurt by recessions in many European countries and slower growth in China. Imports rose 1.9 percent to $232.1 billion, the highest level since the record $234.3 billion in March 2012. Total non-petroleum imports hit a record high, and the U.S. non-petroleum deficit grew to $41.6 billion, the highest since September 2007. So far this year, the trade deficit is running at an annual rate of $501.2 billion, 6.3 percent lower than last year.