US trade deficit hits record $37.6B

Trade Deficit Hits Record $37.6B
Fri Jul 19, 8:34 AM ET
By JEANNINE AVERSA, Associated Press Writer

WASHINGTON (AP) - The United States trade deficit ballooned to a record $37.6 billion in May, reflecting Americans' ravenous appetite for foreign-made cars, TVs and clothes.



The Commerce Department ( news - web sites) reported Friday that the deficit was 4.1 percent higher than the revised $36.1 billion trade gap reported for April.

Many analysts were predicting a slight narrowing of the trade imbalance in May.

Imports grew more than twice as fast as exports. Imports of goods and services increased 1.8 percent to $118.3 billion in May as the U.S. economic recovery helped to boost consumer demand for foreign-made goods.

Imports of automobiles and parts, and of consumer goods — a broad category of items including TVs, VCRs, apparel, furniture and houshold appliances_ climbed to new monthly records.

Exports rose 0.7 percent to $80.6 billion in May. Although countries around the globe are regaining their strength after a worldwide slump, they are doing so more slowly than the United States, thus restraining demand for U.S. products.