US Trade Deficit Narrows in July

The trade gap in the United States declined to USD 39.47 billion in July of 2016 from an upwardly revised USD 44.66 billion deficit in the previous month and below market expectations of a USD 42.7 billion shortfall. Imports declined 0.8 percent while exports rose 1.9 percent to the highest level since September 2015.

The July decrease in the goods and services deficit reflected a decrease in the goods deficit of $5.3 billion to $60.3 billion and a decrease in the services surplus of $0.1 billion to $20.9 billion.

Total exports increased 1.9 percent to $186.3 billion, following a 0.8 percent growth in the previous month. Exports of goods increased $3.4 billion to $124.1 billion: foods, feeds, and beverages rose $3.7 billion, with soybeans went up $0.3 billion. In contrast, exports of services decreased less than $0.1 billion to $62.3 billion in July: transport, which includes freight and port services and passenger fares, and financial services each decreased $0.1 billion while travel (for all purposes including education) rose $0.2 billion.

Sales increased to China (+3.8 percent), Brazil (+6.4 percent) and OPEC (+0.5 percent) while fell to European Union (-9.5 percent), Mexico (-6.4 percent) and Canada (-13.9 percent). 

Total imports declined 0.8 percent to $225.8 billion, following a 1.9 percent growth in June. Imports of goods decreased $1.9 billion to $184.4 billion, led by pharmaceutical preparations (-$1.0 billion); cell phones and other household goods (-$0.6 billion); and civilian aircraft (-$0.9 billion). In contrast, inbound shipments of services increased $0.1 billion to $41.4 billion.

Imports fell from Canada (-11.1 percent); Brazil (-3.9 percent); European Union (-7.7 percent); and Mexico (-7.6 percent) while rose from China (+2.4 percent) and Japan (+2.0 percent).

Year-to-date, the goods and services deficit decreased $0.5 billion, or 0.2 percent, from the same period in 2015. Exports decreased $63.7 billion or 4.8 percent. Imports decreased $64.2 billion or 4.0 percent.

US Trade Deficit Narrows in July

Yekaterina Guchshina |
9/2/2016 2:22:38 PM