Trade deficit rises to more than $70 billion in May

Trade deficit rises to more than $70 billion in May
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The trade deficit rose to more than $70 billion in May amid a surge in imported goods and materials. 

The U.S. trade deficit hit $71.2 billion, rising 3.1 percent from $69.1 billion in April, The Commerce Department said on Friday, according to The Associated Press.

Exports went up 0.6 percent to $206 billion while imports rose 1.3 percent to $277.3 billion. 

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The trade deficit is up significantly as the economy continues to improve from states reopening and people beginning to go back to a more normal pre-pandemic life.

The total trade deficit so far this year is $353.1 billion. The number is up 45.8 percent from the same time frame last year, according to AP.

The total deficit in goods in May was at $89.2 billion. The surplus in services was at $17.9 billion.

The goods deficit has been on the rise due to changing consumption patterns among Americans during the pandemic while the services surplus has been going down due to the pandemic’s impact on areas such as the travel industry, AP noted. 

The trade deficit in April was seen at $69.1 billion while March’s trade deficit was at $75 billion.