US June Trade Deficit Narrows

The United States — United States Department of Commerce reported that the U.S. trade deficit narrowed to $73.3 billion in June from $77.6 billion in May, roughly in line with economist expectations of $73.0 billion. The narrowing was driven by a 1.8% decline in imports to $388.0 billion, while exports fell 0.9% to $314.7 billion. Notable decreases were seen in imports of capital goods, including computers and telecom equipment, and pharmaceuticals, while exports of industrial supplies and materials, particularly crude oil and non-monetary gold, declined sharply. The goods deficit narrowed to $102.1 billion, and the services surplus rose to $28.8 billion. Nationwide Financial Market Economist Oren Klachkin commented that the data represents a 'breather' after recent ramp-ups and does not change the narrative of a growing U.S. economy, citing signs of growing domestic and foreign demand.