By Berta Gomez
Washington File Staff Writer

Washington -- The U.S. trade deficit narrowed to $46 billion in May as exports rose to a record $97.1 billion for the month, the Department of Commerce reports.

The deficit, down $2.2 billion from a revised figure of $48.1 billion for April, comprised a goods deficit of $50.8 billion and a services surplus of $4.9 billion, the department said July 13.

The 4.5 percent reduction in the trade deficit during May was the first reduction after five straight months of increases. U.S. exports grew by $2.7 billion in May, far outpacing imports, which increased $600 million to reach $143.1 billion for the month.

Some analysts believe the export surge was due in part to the relatively weak dollar, which makes U.S. goods cheaper overseas, as well as to some improvement in foreign economic growth.

The May data reflected export increases in capital goods, industrial supplies and materials, food and beverages, and automobiles, the Commerce Department said.

The bilateral trade deficit with China grew in May to $12.1 billion, but declined with Japan to $5.5 billion, with Canada to $4.8 billion and with the European Union to $7.9 billion.

The value of U.S. imports of crude oil rose from April to May, as did the trade deficit with the Organization for Petroleum Exporting Countries (OPEC), which grew from $5.3 billion to $5.6 billion.

Following are some key figures:

U.S. GOODS AND SERVICES EXPORTS, IMPORTS AND TRADE BALANCE
Millions of dollars, on a balance of payments basis, seasonally adjusted

                      Trade
                    balance        Exports         Imports

Jan.-Dec. 2002     -421,735        975,940       1,397,675
Jan.-Dec. 2003     -496,508      1,020,503       1,517,011


Jan.-May 2003      -208,734        411,890         620,624
Jan.-May 2004      -230,983        468,406         699,389

May       2003      -40,827         82,581         123,408
May       2004      -45,954         97,138         143,091


U.S. GOODS EXPORTS, IMPORTS AND TRADE BALANCE
Millions of dollars, on a balance of payments basis, seasonally adjusted

                      Trade
                    balance        Exports         Imports

Jan.-Dec. 2002     -482,895        681,833       1,164,728
Jan.-Dec. 2003     -547,552        713,122       1,260,674


Jan.-May  2003     -229,221        288,593         517,814
Jan.-May  2004     -254,562        328,574         583,136

May       2003      -45,099         57,816         102,915
May       2004      -50,806         68,708         119,513


U.S. SERVICES EXPORTS, IMPORTS AND TRADE BALANCE
Millions of dollars, on a balance of payments basis, seasonally adjusted

                      Trade
                    balance        Exports         Imports

Jan.-Dec. 2002       61,160        294,107         232,947
Jan.-Dec. 2003       51,044        307,381         256,337


Jan.-May  2003       20,487         123,197        102,810
Jan.-May  2004       23,579         139,832        116,253

May       2003        4,272         24,765          20,493
May       2004        4,852         28,430          23,578

U.S. GOODS EXPORTS, IMPORTS AND TRADE BALANCE, BY COUNTRY
Millions of dollars, on a Census basis, not seasonally adjusted

                  Bilateral            May             May
                    balance        exports         imports

Total               -47,597         69,709         117,306

North America        -8,538         25,566          34,104
  Canada             -4,770         16,317          21,087
  Mexico             -3,768          9,249          13,017

European Union (25)   7,911         14,907          22,817
Western Europe       -8,203         15,859          24,063
  Euro Area          -5,807         10,893          16,700
  European Union (15)-7,565         14,526          22,091
    Austria            -326            158             485
    Belgium             352          1,473           1,121
    Finland             -59            213             273
    France             -510          1,828           2,337
    Germany          -3,727          2,732           6,459
    Italy            -1,111          1,039           2,149
    Netherlands       1,089          2,029             940
    Spain              -149            484             633
    Sweden             -897            294           1,191
    United Kingdom     -769          3,134           3,904
    Other EU         -1,458          1,141           2,599

  European Free Trade
      Association      -557            927           1,484
    Norway             -409            144             553
    Switzerland        -156            725             882
    Other EFTA            8             58              50
  Other Western Eur.    -81            407             488

Eastern Europe, Former
      Soviet Reps.     -998            747           1,745
  Hungary               -41            139             179
  Poland                -93             75             168
  Former Sov. Reps.    -624            414           1,039
    Russia             -532            231             763
    Other FSR           -92            184             276
  Other Eastern Europe -240            119             359

Pacific Rim         -20,423         17,955          38,378
  Australia             648          1,265             616
  China             -12,131          2,896          15,026
  Japan              -5,516          4,345           9,861
  Newly Industrialized
      Countries      -1,308          7,508           8,816
    Hong Kong           646          1,261             615
    South Korea      -1,550          2,498           4,048
    Singapore           554          1,856           1,302
    Taiwan             -957          1,893           2,851
  Other Pacific Rim  -2,117          1,942           4,059

South/Cent. America  -2,622          5,164           7,786
  Argentina              -3            289             292
  Brazil               -390          1,148           1,538
  Colombia             -206            379             585
  Other S/C America  -2,024          3,348           5,372

OPEC                 -5,617          1,800           7,417
  Indonesia            -627            222             850
  Nigeria            -1,166            104           1,270
  Saudi Arabia       -1,080            442           1,521
  Venezuela          -1,749            383           2,132
  Other OPEC           -995            649           1,644

Other countries      -3,581          3,213           6,795
  Egypt                 215            316             101
  South Africa         -297            232             528
  Other              -3,500          2,666           6,165

NOTE: Data on a Census basis reflect movement of goods into and out of the United States through U.S. Customs Service stations. Balance-of-payments basis data adjust Census data to include products that bypass Customs, such as exports of military aircraft and imports of electricity from Canada.