U.S. Foreign Trade Deficit Contracted in July

The U.S International trade deficit narrowed in July to $41.9 billion, down $3.3 billion from June. The decline in the deficit reflected an increase in exports, and a decrease in imports. July exports were $188.5 billion, up $0.8 billion from June. Imports were $230.4 billion, $2.5 billion less than in June.

The goods deficit fell $3.4 billion to $61.4 billion, while the surplus in services decreased less than $0.1 billion to $19.6 billion.

Exports of goods increased $0.6 billion to $128.2 billion, driven by increased exports of automotive vehicles, parts and engines and industrial supplies. Exports of services increased $0.2 billion to $60.3 billion, driven by a $0.1 billion increased in financial services.

Imports of goods fell $2.7 billion to $189.6 billion, largely due to a $1.5 billion decrease in pharmaceutical preparations and a $1.3 billion decrease in cell phones and other household goods. Imports of services increased $0.2 billion to $40.8 billion, mostly due to travel and freight services.

Read the Census/BEA release.