Trade Deficit Grows as Imports Lead Recovery

U.S. exports and imports increased in June, signaling at least some seasonal growth as well as an upturn toward recovery from the recession. The more rapid growth of imports pushed the trade deficit up 3.8 percent or $1 billion in June, according to a report released Wednesday by the U.S. Census Bureau and the U.S. Bureau of Economic Analysis.

Total June exports of $125.8 billion and imports of $152.8 billion resulted in a goods and services deficit of $27 billion, up from $26 billion in May, revised, according to the report.

June exports were $2.4 billon more than May exports of $123.4 billion. June imports were $3.5 billion more than May imports of $149.3 billion.

In June, the goods deficit increased $1.2 billion from May to $38.4 billion, and the services surplus increased $0.1 billion to $11.4 billion.

Exports of goods increased $1.9 billion to $84 billion, and imports of goods increased $3 billion to $122.4 billion.

Exports of services increased $0.5 billion to $41.8 billion, and imports of services increased $0.4 billion to $30.4 billion.

The increase in exports of goods reflected increases in industrial supplies and materials ($1.2 billion); capital goods ($0.4 billion); foods, feeds, and beverages ($0.3 billion); and automotive vehicles, parts, and engines ($0.1 billion). Consumer goods and other goods were virtually unchanged.

The increase in imports of goods reflected increases in industrial supplies and materials ($3.9 billion); automotive vehicles, parts, and engines ($0.9 billion); foods, feeds, and beverages ($0.1 billion); and other goods ($0.1 billion). Decreases occurred in consumer goods ($1.7 billion) and capital goods ($0.1 billion).

Contact Thomas L. Gallagher at tgallagher@joc.com.