The trade report released on Thursday showed the US trade deficit widened, reaching $54.6 billion in May. Analysts at Wells Fargo explained that international trade remained weak in May, but the extent of the decline was less bad.
“Exports remained weak as the global economy continued to grapple with COVID-19. Consumer goods was the only category of goods exports that rose in May. Similarly, consumer goods imports rose at the fastest pace since the end of 2017.”
“Industrial supplies imports also saw a strong gain, which, paired with the decline in the ISM supplier deliveries index, is evidence that the logjam in global supply chains may be beginning to break up.”
“Services trade remained weak as well and continued to be held back by tourism.”