The US trade deficit widened by less than expected in May, figures have shown, despite a jump in oil prices which increased the cost of imports. The deficit was $63.8bn (£35bn) in May, from $63.3bn in April, the Commerce Department said. The US’s foreign oil bill jumped by 16.9% to $27.9bn.

Critics of George W Bush point to the size of the deficit as evidence that he is mishandling the economy.

Mr Bush has countered that without the impact of oil, US trade is robust.

Exports rose by 2.4% to $118.7bn, the biggest monthly gain in 17 months and driven by sales of farm goods, consumer products and industrial supplies.

Imports rose by 1.8% to a record $182.5bn

The trade deficit with China - which has become a politically sensitive issue - widened again during May, hitting $17.7bn. Some in the US have accused China of keeping its currency artificially weak in order to boost exports.