US trade deficit narrows to US$73.1 billion as exports pick up
THE US trade deficit narrowed in June for the first time in three months as the value of exports of goods and services increased by the most since earlier this year.
The gap in goods and services trade shrank 2.5 per cent from the prior month to US$73.1 billion, Commerce Department data showed on Tuesday (Aug 6). The median estimate in a Bloomberg survey of economists called for a US$72.5 billion shortfall.
The value of exports increased 1.5 per cent, while imports rose 0.6 per cent. The figures are not adjusted for inflation.
The June figures cap a quarter in which goods and services trade subtracted the most from gross domestic product since early 2022, based on the government’s first estimate. The US trade deficit has widened in all but two months since August of last year.
Survey results from the Institute for Supply Management paint a mixed picture of July trade. The group’s index of manufacturer exports contracted for a second month, while service providers business overseas grew solidly.
On an inflation-adjusted basis, the merchandise trade deficit narrowed to US$91.4 billion in June, the smallest in three months.
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The increase in merchandise exports was broad and included increases in outbound shipments of commercial aircraft, natural gas and other petroleum products, and motor vehicles. Imports were fuelled by gains in pharmaceuticals and capital goods.
Travel exports or spending by visitors to the US, declined 2 per cent from a record level in the prior month. Travel imports, a measure of Americans travelling abroad, edged up 0.7 per cent to a four-month high.
The US merchandise-trade deficit with China narrowed to US$22.3 billion. The value of US goods exported to China rose a four-month high. The goods shortfall with Mexico narrowed slightly. BLOOMBERG
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