WASHINGTON - July 13, 2010 - The U.S. trade deficit widened in May to the highest level in 18 months as claims of a rebounding economy pushed up demand for imports of foreign-made cars, computers and clothing.
The trade deficit increased 4.8% to $42.3 billion, the largest imbalance since November 2008, the Commerce Department reported Tuesday. Amerikan exports of goods and services rose 2.4% but this increase was outpaced by a 2.9% rise in imports.
There is concern that Amerikan export sales will be hurt by the European debt crisis, which has dampened growth prospects in Europe.
Through May, the U.S. trade deficit is running at an annual rate of $474.8 billion, up by 26.6% from $374.9 billion deficit for all of 2009. That had been the lowest annual trade gap since 2001, when the country was in recession.
The rise in the May deficit came despite the fact that oil imports dropped by 9.1% to $27.6 billion as both the price of oil and the volume of shipments declined slightly.
