A surge in July sales of American motor vehicles, industrial equipment and aircraft pushed U.S. exports up 3.7 percent to an all-time high in July, slicing the country's trade deficit to the lowest level in three months and easing concerns of a new recession.
Those fears intensified last month after the Commerce Department's report showed the U.S. trade deficit rose in June to its highest level since October 2008, with exports declining 2.3 percent.
But exports rose to $178 billion, pulling the trade deficit to its lowest level in three months, said the Commerce Department. The trade deficit declined 13.1 percent to $44.8 billion from June to July.
Imports in July fell 0.2 percent to $228.8 billion from July, largely due to a drop in crude oil prices. Imports of automotive, vehicle parts and engines grew by $2.9 billion within the same period.
The U.S.’s trade deficit with China increased 1.1 percent to $27 billion, pushing the year-to-date imbalance to $160 billion. The U.S. trade deficit with Japan rose 30 percent to $5.3 billion within the same period, as Japanese auto factories recovered from supply chain disruptions caused by the earthquake and tsunami in March.
-- Contact Mark Szakonyi at email@example.com. Follow him on Twitter @Szakonyi_JOC