Concerns over a too rapidly slowing China are rising but at least today the trade deficit narrowed. The move was primarily caused by weaker demand for consumer goods from abroad. Bloomberg reports, “The trade deficit in the U.S. narrowed in May as falling crude oil prices and weakening demand for consumer goods trimmed the import bill.The gap shrank 3.8 percent to $48.7 billion, in line with the median estimate of economists surveyed by Bloomberg News, from $50.6 billion in April, Commerce Department figures showed today in Washington. Purchases from abroad fell to the lowest level in three months, while exports climbed to the second- highest on record.

Slowing global growth, which led central banks from Europe to China to cut interest rates and announce more stimulus on July 5, may mean purchases of American-made goods will cool. At the same time, a lack of U.S. hiring that helped prompt the Federal Reserve to ease monetary policy last month may temper household spending, translating into waning demand for foreign goods..."