The US trade deficit shrank in May as the value of imported merchandise declined to the lowest level since October 2021.

The shortfall in goods and services trade declined by $5.5 billion, or 7.3% from a month earlier, to $69 billion, Commerce Department data showed Thursday. The figures aren’t adjusted for inflation. The gap matched the median estimate in a Bloomberg survey of economists.

The value of goods and services imports declined 2.3%, led by decreases in consumer goods and industrial supplies. Total exports fell 0.8%, led by a drop in shipments of food and feeds such as soybeans.

Demand for foreign goods is easing as American consumers temper their spending on goods in favor of services and experiences. The drop in inbound shipments suggests US firms are focused on getting inventories more in line with sales.

A separate government report out last week showed inflation-adjusted spending has essentially stalled in recent months as households feel the pinch from high prices and borrowing costs.

Though a smaller deficit may have contributed to economic growth in the second quarter, economists don’t expect trade to provide the same support to the economy as in past years as demand abroad also eases. 

On an inflation-adjusted basis, the merchandise trade deficit fell to $89.2 billion in May.