The U.S. trade deficit widened sharply in May as exports fell, but subsiding imports suggested trade could still lead an anticipated rebound in economic growth in the second quarter.

Canada's merchandise trade deficit narrowed to $5.9 billion in May, according to data from Statistics Canada, after hitting a record high in April. The country's exports rose by 1.1 per cent, after falling steeply by 11 per cent the month prior.

Canadian exports heading to the United States continued to dry up in May as trade picked up with other nations, Statistics Canada said Thursday.