U.S. trade deficit declines in May

U.S. trade deficit declines in May

U.S. trade deficit declines in May

The import of five new airliners in May contributed the most to the growth, Statistics Canada said Thursday without elaborating.

USA trade deficit in May stood at $46.5 billion, which was slightly lower than the $47.6 million shortfall registered in April, but the prospects of trade picking up would depend on economic growth in the second quarter, the Commerce Department stated.

President Donald Trump issued an executive order on March 31 calling for the Commerce Department to prepare a report within 90 days on the bilateral trade deficits the United States maintains with other countries. The adjusted trade deficit for the first five months of 2017 is about $30 billion, compared to $26 billion in 2016. Analysts had expected a bigger drop of three percent. That's nearly 18 per cent above where Canadian exports were a year ago.

The trade gap with Mexico surged 15.8 per cent to $7.3 billion, the highest since October 2007.

Imports in the "Glass-plate, sheet, etc." category were flat in May at $161 million, almost unchanged from April's figure. US exports rose modestly to $192 billion - highest since April 2015 - on rising shipments of cars and consumer goods, including cellphones. Critics of unfettered trade say persistent trade deficits are a sign that the United States is losing out to global rivals and that US trade policy is failing American companies and workers.

The agency went on to say imports rose for the sixth month in a row, up 2.4% in May to $49.8 billion.

However, he noted that manufacturing surveys have pointed to stronger exports in the third quarter.

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