By Harriet Torry


U.S. trade with the rest of the world decreased in May, as both imports and exports declined, the Commerce Department said Thursday. Imports dropped to their lowest level since December 2021, a potential sign of cooling consumer demand.

Here are takeaways from Thursday's Commerce Department report on U.S. import and export trends. The trade figures aren't adjusted for inflation and so reflect changes in demand and price:

- Imports declined 2.3% in May from the prior month to a seasonally adjusted $316.08 billion, reflecting lower shipments of industrial supplies, and consumer goods like cell phones and toys. In the U.S., consumer spending on goods declined sharply in May amid rising borrowing costs and inflation that remained at a historically high level.

- Exports fell 0.8% in May to $247.1 billion, as shipments of soybeans, natural gas and oil decreased.

- The trade gap in goods and services narrowed by 7.3% in May to $68.98 billion from April's deficit of $74.44 billion. The gap shows the U.S. imports more goods and services than it exports.

-Exports of services increased in May as international travelers made trips to the U.S. The services surplus was the highest since February 2021.

-Through May this year, the goods and services deficit decreased 22.8% from the same period in 2022, the Commerce Department said.


Write to Harriet Torry at Harriet.Torry@WSJ.com


(END) Dow Jones Newswires

07-06-23 0916ET