The trade deficit figures for May 2008 continue the pattern set in recent months. In spite of the weak dollar and the financial crisis, the trade deficit is stubornly slightly higher this year than it was last year. It could be worse: the 2007 defict was better than the deficit in 2006. It could also be better. A more rapid narrowing of the trade deficit would help put a basis other than credit under the dollar, and raise the odds of a soft landing.
The May 2008 deficit for goods and services stood at 59.8 billion dollars.
The May 2007 deficit was 59.4 billion.
Thus, the May deficit was the second highest on record for May, behind only the 2006 deficit.