U.S. Trade Deficit Widens on Fall in Exports

The U.S. trade deficit widened in May, fueled by a drop in exports that could heighten concerns over weak overseas demand and a strong U.S. dollar. The increase in the trade gap to $41.9 billion, announced on Tuesday by the Commerce Department, was less than analysts had expected. But the drop in exports in May highlights a change in America's recovery from recession in which the economy has relied more on domestic drivers like construction and services, rather than export-led industries such as manufacturing. Led by a drop in overseas sales of U.S.-made capital goods, exports fell $1.5 billion in May, or 0.8 percent, to $188.6 billion.