Trade Gap Narrows Sharply

The nation's trade gap narrowed sharply in May, to $43.1 billion from a revised $46.1 billion in April. Exports jumped 1.9 percent to $215.3 billion to well exceed a 0.4 percent rise in imports which totaled $258.4 billion.

Exports of goods, as indicated in last week's advance report, were strong, up 2.6 percent to $144.9 billion with imports up 0.5 percent to $210.7 billion. Exports of capital goods including aircraft showed special strength as did exports of food. Exports of services rose 0.6 percent to $70.4 billion with imports of services down 0.1 percent to $47.7 billion.

China's trade surplus with the United States was $33.2 billion in May and $152.2 billion year-to-date, up 13.5 percent from the same period last year.

Today's report is very positive for the economy showing strong demand for exports in what will be a positive for second-quarter GDP. It also underscores the strength of cross-border trade going into what appears to be a period reciprocal tariff actions.