Strong consumer demand and record gasoline prices pushed US retail sales higher in May and propelled the US trade deficit to a new record in April, two government reports said today.
Retail sales rose a greater-than-expected 1.2% in May to a seasonally adjusted $335.8 billion, the Commerce Department said. Gasoline sales increased 4%, the biggest gain since February 2003.
Gasoline prices hit a record weekly high in the US in late May. Sales of cars and car parts increased 2.7%, while sales of clothing, food, and health and personal care products also showed gains.
A second Commerce Department report showed the US trade deficit widened unexpectedly in April to a record $48.3 billion, as strong consumer demand and the highest oil prices in 21 years pushed imports to a record $142.3 billion. At the same time, exports tumbled slightly from March.
The US goods trade deficit with China jumped nearly 15% in April to $12 billion. The politically charged trade gap with China is expected to set another record in 2004, after reaching $124 billion last year.
The overall US trade gap is also on track to break last year's record of $496.5 billion.
