MercoPress. South Atlantic News Agency

First US trade deficit reduction in six months.

The US trade deficit last May dropped 4,5% and now stands at 46 billion US dollars, the first contraction in six months, according to the latest report from the Department of Commerce.

Exports expanded 3% reaching an unprecedented 97 billion US dollars primarily by demand for aircrafts, industrial engines, oil drilling equipment and computers. Imports on the other hand increased 0,4% reaching 143 billion US dollars.

However in spite of the May improvement the annual trade deficit is forecasted to break last year's record of 496,5 billion US dollars. In the first five months of this year the accumulated deficit reached 231 billion compared to 208,7 billion in the same period of 2003.

The increase in imports is partly attributed to a surge in oil costs, vehicle related products, food, drinks and animal feeds.