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US trade deficit shrinks in May

The US trade deficit narrowed for a second month in a row in May amid weak growth in the world's largest economy and a global slowdown.

The trade gap shrank to $48.7 billion, down from a revised $50.6 billion in April, the Commerce Department said.

The May shortfall was slightly better than the $48.9 billion deficit expected by most analysts.

Exports rose 0.2% to $183.1 billion, the figures show. Imports fell 0.7% to $231.8 billion.

The politically sensitive gap in goods trade with China, the biggest US creditor, widened in May to $26 billion from the April reading of $24.5 billion.