The nation is buying goods and services from international markets at a much faster clip than it’s selling its own wares, according to new numbers from the Commerce Department, perpetuating a long-term trend that acts as a headwind to domestic economic growth.
The US racked up a $41.9 billion trade deficit in the month of May—an increase of more than $1 billion from the previous month. That bring the total trade deficit for 2015 to $212.8 billion, putting the nation on track to eclipsing 2014’s shortfall of more than $508 billion.
Data shows that May’s increase is attributable to declining exports, which totaled $188.6 billion. Imports, meanwhile, stayed relatively consistent month-over-month.
Bloomberg, which had forecast a monthly deficit of $42.7 billion, pointed out that May marked the third straight month in which the total value of US exports declined.
A strengthening US dollar in comparison to other international currencies—particularly the Euro—could be responsible for the slight export drop-off. Shipments of goods and services to Germany fell off by 6 percent, while exports to France also dropped by 4.2 percent. Sales to Mexico and Japan also declined in May.
The United States’ primary destination for exports, Canada, has also played host to a slight economic contraction in the first few months of 2015.
Annual international trade deficits, which show international commerce having a drag on overall economic growth, have been a fixture in the US economy since the 1970’s. They have, in the long run, steadily increased as the US has committed to new sweeping foreign trade agreements.
The 2011 trade pact with South Korea, for example, led to 50% increase in the trade deficit with that country in just two years.
The highest recorded annual trade deficit was more than $761 billion in 2006.
Last month, President Obama signed into law Trade Promotion Authority–legislation that will ease the passage of trade deals negotiated by this administration and the next.
