Trade Tides: U.S. Goods Deficit Rises in May

The U.S. trade deficit in goods surged in May, recording an 11.1% rise to $96.6 billion, according to the Commerce Department's Census Bureau. This was primarily due to a significant decline in exports, which dropped $9.7 billion to $179.2 billion.

Imports remained nearly unchanged at $275.8 billion, setting the stage for a potential boost in gross domestic product (GDP) for the second quarter. This follows a record-high deficit in the first quarter caused by businesses importing heavily in anticipation of President Donald Trump's sweeping tariffs.

Despite current economic indicators pointing to a softening market, the Atlanta Federal Reserve is optimistic, forecasting a 3.4% increase in GDP for this quarter. Economists, however, urge caution, noting that the anticipated uptick may not necessarily reflect overall economic strength.

(With inputs from agencies.)