The U.S. Commerce Department reported on Thursday that U.S. the goods and services trade deficit widened to $54.6 billion in May from a revised $49.8 billion in the previous month (originally a gap of $49.4 billion). That was the biggest trade gap since December 2018.

Economists had expected a deficit of $53.0 billion.

According to the report, the May advance in the goods and services deficit reflected an increase in the goods deficit of $4.2 billion to $76.1 billion and a decline in the services surplus of $0.6 billion to $21.5 billion.

In May, exports of goods and services from the U.S. fell 4.4 percent m-o-m to $144.5 billion (the lowest level since November 2009), while imports decreased 09 percent m-o-m to $199.1 billion (the lowest level since July 2010), in part, due to the impact of COVID-19, as many businesses were operating at limited capacity or ceased operations completely, and the movement of travelers across borders was restricted.

Year-to-date, the goods and services deficit declined 9.1 percent from the same period in 2019. Exports plunged 14.0 percent, while imports tumbled 13.1 percent.