-ISM
The US trade deficit increased 2.9% in May amid weak exports of aircraft and other manufacturing goods. The US trade shortfall rose to a seasonally adjusted $41.9 billion from a revised $40.7 billion in April, the Commerce Department said. Exports fell 0.8% to $188.6 billion, undermined by a strong Dollar and lacklustre growth outside the US. At the same time, imports declined 0.1% to $230.5 billion. The trade deficit has averaged $41.3 billion in the first two months of the second quarter, compared with a $43.4 billion average in the first quarter. Therefore, trade deficit is unlikely to be a drag on the nation's gross domestic product in the second quarter as it was in the first three months of the year, when the US economy shrank. For the first time in 25 years the US saw a surplus with Canada, due to lower oil imports and a stronger Dollar. The deficits with China and the European Union both widened, though.
A separate report showed the number of job openings remained at record high. The number of job openings in the US totalled 5.36 million in May, little changed from the prior month. Job gains have been solid since February 2014, yet many Americans are still confronting financial uncertainties due to tepid wage growth. Last week, the government said employers added a robust 223,000 jobs in June. However, average hourly wages remained virtually flat.
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