Trade Deficit Shrinks to $42.8 Billion

Trade Deficit Shrinks to $42.8 Billion

The U.S. goods and services deficit fell 14 percent from $49.8 billion in June, revised, to $42.8 billion, according to a report Thursday from the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce.

July imports of $196.1 billion in July were $4.2 billion less than June imports of $200.3 billion. Imports declined 2.1 percent.

July exports of $153.3 billion were $2.8 billion more than June exports of $150.6 billion. Exports increased 1.8 percent in July.

By The Numbers: U.S. Foreign Trade.

In July, the goods deficit decreased $7 billion from June to $55.2 billion, and the services surplus was virtually unchanged at $12.5 billion. Exports of goods increased $2.8 billion to $107.7 billion, and imports of goods decreased $4.2 billion to $162.9 billion. Exports of services were virtually unchanged at $45.6 billion, and imports of services were virtually unchanged at $33.2 billion.

Capital goods, other goods and industrial supplies and materials led the July growth in exports. A decrease occurred in automotive vehicles, parts, and engines. Foods, feeds, and beverages and consumer goods were virtually unchanged.

The decrease in imports of goods reflected decreases in consumer goods; automotive vehicles, parts, and engines; capital goods; industrial supplies and materials; other goods; and foods, feeds, and beverages.

The goods and services deficit increased $9.7 billion from July 2009 to July 2010. Exports were up $23.7 billion, or 18.3 percent, and imports were up $33.4 billion, or 20.5 percent.

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