US goods trade deficit widens sharply

The US trade deficit in goods widened sharply ​in May as businesses ‌boosted imports to avoid shortages and higher prices related to the ​Middle East conflict, which ​could see economists cut their estimates ⁠for second-quarter gross domestic ​product.

The goods trade gap increased 27.4% ​to $105.8 billion last month, the Commerce Department's Census Bureau said on Friday.

Economists ​polled by Reuters had forecast ​the deficit at $85.0 billion. Imports of goods increased $10.9 ‌billion ⁠to $313.4 billion, while exports fell $11.8 billion to $207.7 billion.

Trade had been a drag on gross domestic product for ​two straight ​quarters. ⁠Growth estimates for the second quarter are converging ​around a 2.5% annualised ​rate.

The ⁠economy grew at a 2.1% annualised rate last quarter after ⁠expanding ​at a 0.5% ​pace in the October-December quarter.

-Reuters