New orders volumes for American capital goods unexpectedly declined in May, Reuters reports. However, revised data for previous months to higher readings suggests that companies’ spending on equipments slightly rose in second quarter.

Another report issued on Wednesday showed significant reduction in goods trade deficit last month. This is a sign that economy is accelerating after slowing down in first quarter.

There are concerns that worsening relations between US and major trade partners, including China, Mexico, Canada and EU, can reduce business confidence, result in supply chains disruptions and restrict economic growth.

Capital goods orders fell by 0,2% in May. Data for April was revised to higher level from 1% to 2,3%. Annual growth is 6,8%.

Trade deficit in regards to goods dropped by 3,7% to $64,8 billion in May as export growth exceeded increase in import.

Relatively nice picture so far is spoiled by housing market. Data showed that purchases of secondary housing dropped in May. Besides, there was significant reduction in mortgage applications last week. Market is under pressure from land and labor deficit that restrict amount of houses available for sale.