The Commerce Department said that the U.S. trade deficit dropped 2.3% to $46.5 billion in May. The trade gap was estimated to be falling to $46.2 billion.
In May, exports of goods and services increased 0.4% to $190.2 billion, reaching the highest level since April 2015. The surge in exports was contributed to the increase in exports of consumer goods, including cell phones and other household goods. In addition, exports to China rose 3.6%, and the exports of motor vehicles and parts also increased.
As for imports of goods and services in May, it decreased 0.1% to $238.5 billion. Imports of cell phone and other households dropped $0.9 billion. In addition, imports of motor vehicles and parts also decreased.
The deficit dropped to $62.8 billion from $63.8 billion in April after adjusting for inflation. Excluding petroleum, the deficit in goods and services decreased to $40.3 billion in May from $42.1 billion.
So far in 2017, deficit in the trade of goods was $336.2 billion and surplus in the trade of services, such as banking and tourism, was $103.1 billion.