WASHINGTON — The gap between what the United States imports and exports grew dramatically in May, fueled in large part by a boom in artificial intelligence spending that pushed capital goods imports to their highest level ever recorded.
According to figures released Tuesday by the Commerce Department’s Bureau of Economic Analysis and Census Bureau, the trade deficit surged 42.2% to reach $77.6 billion. Economists surveyed by Reuters had projected the deficit would come in at $78.5 billion.
Total imports climbed 3.3% to $395.3 billion for the month. Within that figure, imports of capital goods — things like machinery and equipment — soared to a record $128.0 billion, driven heavily by business investment in artificial intelligence infrastructure, which depends significantly on imported components.
On the other side of the ledger, exports fell 3.2% to $317.7 billion. One bright spot was petroleum shipments, which hit their highest level on record, partly due to the ongoing conflict in the Middle East. The United States is currently a net exporter of oil.
The trade data adds to a pattern that has weighed on the country’s gross domestic product. Trade has now subtracted from GDP for two consecutive quarters. The Atlanta Federal Reserve’s economic forecasting model currently projects GDP will grow at an annualized rate of 1.2% in the second quarter — a slowdown from the 2.1% pace recorded in the January through March period.
