US trade gap dips to $59.8 billion

The US trade deficit declined in May to 59.8 billion as exports rose to a new record, the Commerce Department reported Friday in a modest piece of positive news for an ailing economy.
The deficit in goods and services fell 1.2 percent from a revised 60.5 billion dollars in April, and was narrower than the 62.2 billion dollars expected by private analysts.
Exports increased to an all-time high of 157.5 billion dollars in May from 156.2 billion in April. Imports rose a smaller amount to 217.3 billion dollars from 216.7 billion.
The politically sensitive deficit with China increased to 21 billion dollars from 20.2 billion.
The other main factor in the deficit was oil, which declined slightly to 33.15 billion dollars in the month from 34.77 billion.
The goods deficit was only slightly offset by the longstanding surplus in services, which increased 200 million dollars to 12.7 billion.
Exports got a lift from a weak dollar, with industrial supplies accounting for 34 billion dollars and consumer goods 13.4 billion, both records.
"At least the trade sector is holding up and that creates some hopes that growth can remain positive," said Joel Naroff of Naroff Economic Advisors.