US trade deficit falls to nine-year-low in May

• Source: Xinhua
• [08:22 July 11 2009]
• Comments

The US trade deficit in May fell to 26 billion dollars, a drop of 9.8 percent from April and the lowest level in more than nine years, the Commerce Department said Friday.

Exports in May posted a small gain while the weak American economy pushed imports down for a 10th consecutive month, which narrowed the deficit to the lowest level since November 1999. Economists expected the deficit to widen to 30.2 billion dollars in May.

For May, exports of goods and services rose 1.6 percent to 123.3 billion dollars, reflecting increased sales of soybeans, corn and other farm products, along with higher exports of industrial machinery, generators and computers.

Imports edged down 0.6 percent to 149.3 billion dollars, the 10th straight monthly decline. Imports are 34.9 percent below the all-time high set last July.

So far this year, the deficit is running at an annual rate of 350 billion dollars, about half of the 695.9 billion dollars deficit for all of 2008. Economists believe that trend will continue as weakness in the US depresses demand for imported goods.

Analysts said that the improved deficit reflects the US recession, which has sharply cut American demand for imported goods. US exports also are down from last year's peaks, impacting American manufacturers, but those declines have been smaller than the drop in imports.