(Bloomberg) -- The U.S. merchandise-trade deficit widened more than forecast in May as the value of imports rose to near-record levels and exports declined.
The deficit increased to $88.1 billion from a revised $85.7 billion in April, according to Commerce Department data released Thursday. The median estimate in Bloomberg survey of economists had called for a $87.5 billion shortfall last month.
Imports rose 0.8% to $232.4 billion, while exports declined 0.3% to $144.3 billion. The value of inward-bound consumer-goods shipments climbed to $63.8 billion.
Imports have resumed gains as house-bound Americans purchase goods for their homes and retailers work to replenish inventories made lean following the initial pandemic-induced global stoppage. Ports worldwide have been congested and freight rates have climbed to records amid a shortage of pallets and containers.
Wholesale inventories climbed 1.1%, while retail inventories retreated for a third month, dropping 0.8%.
Overall, the value of U.S. exports plus imports climbed to $376.7 billion in May, signaling a continued rebound in trade as the world recovers from the pandemic.
Vehicle Effects
The biggest percentage-change decline in exports came from vehicle exports, which fell 4.7% to $11.4 billion, a second month of decreases.
The value of automotive-vehicle imports slipped 0.6% to $29.2 billion.
Read more: Wait Times for Chips Hit Record 18 Weeks as Shortage Deepens
Automakers in April said they had deepened and extended production cuts at some North American plants as they cope with a worsening global shortage of semiconductors. Chip-starved industries from automakers to consumer electronics will need to wait a bit longer for components, as delays in filling orders continue to get worse.
Read More: The World Is Short of Computer Chips. Here's Why: QuickTake
The value of imports of industrial supplies climbed 4.5% from a month earlier to $51.9 billion, while exports dropped 0.9% to $51.8 billion.
The trade picture will come into greater focus when the final report, which includes services, is released on July 2.
©2021 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
