WASHINGTON – The U.S. trade deficit fell 3.8 percent to $48.7 billion in May, down from $50.6 billion in April, helped by cheaper oil that lowered imports and an increase in American exports to Europe and China.
But economists cautioned that the global economy has weakened since then.
A narrower trade gap acts as less of a drag on growth. It means the U.S. is spending less on foreign-made products, while taking in more from sales of American-made goods.
