U.S. Trade Deficit corrects lower in June but remains wider in Q2
June’s trade deficit of $73.3bn is in line with expectations and down from $77.6bn in May though still well above deficits of near $55bn in each month from January through April. This confirms a significant negative from net exports in Q2 GDP.
Exports fell by 0.9% after a 3.2% May decline while imports fell by 1.8% after a 3.3% May increase. Goods saw exports down by 1,9% and imports down by 2.5%, compared with declines of 1.8% and 2.6% respectively in the advance release.
The services surplus of $28.8bn was up from two straight months at $28.3bn with exports up by 1.0% and imports up by 0.7%. The exports gain was however partly offset by a downward revision to May, now up by 0.4% rather than 0.7%.
Goods exports fell by $4.0bn on a balance of payments basis and by $3.8bn on a census basis. Census basis data showed the fall fully due to a $5.7bn fall in crude oil that will be in part on prices. Computers slipped by $1.0bn but elsewhere exports were mostly improved.
Goods imports fell by $7.9bn on a balance of payments basis and $7.7bn on a census basis. Hewer slippage was more board based by computers with a $3.0bn fall were a standout. Computer exports and imports are still up strongly in the year to date leaving it unclear whether the latest slippage is corrective or a turning in trend. Imports also shoed large falls in crude oil of $1.3bn and pharmaceutical preparations of $1.9bn. The latter is significantly down in the year to date.
