The Commerce Department reports that the U.S. trade deficit shrank in May as demand for imports fell. Imports lowered .7% that month and the deficit fell 3.8%, to $48.7 billion.
Experts have cited numerous causes for the decline in imports, from the falling prices of crude oil to slowing global growth. In addition, a lack of hiring in the United States has initiated household belt-tightening, leading to less demand for imported goods.
Exports in the same month rose .2%, with exports to the Eurozone up 2.6% and exports to China up 5.2%. Despite the drop in the U.S. trade deficit, imports from both Europe and China still grew in May.