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WASHINGTON – The U.S. 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.
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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% annualized rate.
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The economy grew at a 2.1% annualized rate last quarter after expanding at a 0.5% pace in the October-December quarter.
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(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
Copyright Reuters or USA Today Network via Reuters Connect.