WASHINGTON (MarketWatch) -- The U.S. trade deficit narrowed by 9.8% in May to $25.96 billion, the Commerce Department said Friday. This is the lowest deficit since November 2009. The narrowing of the trade deficit was unexpected. The consensus forecast of Wall Street economists was for the deficit to widen to $29.4 billion. Exports rose while imports declined in May. The U.S. trade deficit with China narrowed to $17.48 billion in compared with $21.36 bln in the same month last year. The government also revised the deficit in April to $28.8 billion from $29.2 billion. The May report suggests second-quarter gross domestic product may not decline as sharply as expected due to the improved trade outlook.
