WASHINGTON—The U.S. trade deficit narrowed in May as slowing domestic demand amid rising interest rates curbed imports, which could see trade contributing to economic growth in the second quarter after being a drag for nearly two years.
The Commerce Department said on Thursday that the trade deficit declined 1.3 percent to $85.5 billion. Imports of goods and services rose 0.6 percent, which was offset by a 1.2 percent increase in exports to a record high.
