After five months of increases, the nominal trade deficit narrowed in May to $44.4 billion as exports increased while imports fell slightly. May's decline in imports was entirely a result of a marked drop in imports of petroleum products, and imports of nonpetroleum goods continued to rise in May on the heels of two months of very robust growth. May's rise in nonpetroleum imports was driven by autos, auto parts, and capital goods.
The increase in exports in May was fairly broad based across major product categories. Only exports of capital goods fell. According to a number of analysts, real exports rebounded in the second quarter, following the sharp decline in the previous quarter (the largest decline since the last recession).
On a year-over-year basis, growth of both exports and imports remained tepid in May, continuing on a low trajectory compared to recent history (excluding plunges in international trade during past recessions).
