U.S. June Advance Goods Trade Deficit corrects lower as exports bounce
June’s advance goods US trade deficit of $96.8bn from $99.4 is narrower than expected and the first decline in the deficit since December. This and a 0.7% rise in advance retail inventories is supportive for Q2 GDP though the advance rise in wholesale inventories was subdued at 0.2%.
The advance goods trade data shows exports up by 2.5% after a 1.8% decline in May and the rise is probably even stronger in real terms with exports prices having fallen in May. Imports rose by 0.7% after a 0.7% May decline and here the impact of price changes is likely to be small.
The exports gain was broad based but strongest in food, capital goods and autos. Imports saw strength in capital and consumer goods but weakness in industrial supplies. The rise in retail inventories came largely in autos, one of the few areas where sales fell in a mostly strong June retail sales report.
