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US trade gap widens to $42.3bn
The US trade deficit widened unexpectedly in May, prompting analysts to ratchet back estimates for second quarter economic growth despite signs of increased demand both at home and abroad. The trade gap grew to $42.3bn (£27.9bn), the largest since November 2008, as imports from China soared 12.1 per cent, helping overpower the best month for US exports since September 2008, the Commerce Department said. US demand appeared to be holding, with a 2.9 per cent rise in overall imports, but more of that demand is being sated by overseas products. The widening gap was seen weighing on GDP. RBS lowered its estimate of second quarter US economic growth to 2.8 per cent, while Morgan cut its to 2.5 per cent.