US Trade Deficit Narrows to $73.3 Billion on Drop in Imports
Imports fell 1.8% to $388 billion, helping cut the gap even as exports also declined, the Commerce Department said.
- The Commerce Department's Bureau of Economic Analysis and Census Bureau reported on Tuesday that the U.S. trade deficit narrowed 5.6% to $73.3 billion. Economists polled by Reuters had forecast the shortfall at $73.0 billion.
- Goods exports declined 1.9% to $206.9 billion while Goods imports fell 2.5% to $309.0 billion. Total exports slipped 0.9% to $314.7 billion, contributing to the overall narrowing.
- Imports dropped 1.8% to $388.0 billion as the economy grew at a 1.5% annualized rate. Domestic demand, driven by business spending on artificial intelligence infrastructure, increased at its fastest pace since the first quarter of 2023.
- Strong domestic demand being satiated by imports suggests this narrowing trend is unlikely to be sustained. Reliance on foreign goods despite the recent contraction indicates ongoing structural trade pressures.
- The government reported last week that the trade deficit widened further in the second quarter, subtracting a full percentage point from gross domestic product. This contrast underscores the volatility in monthly trade data.
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Declining imports compress US trade deficit in June
By Lucia Mutikani WASHINGTON, Aug 4 (Reuters) - The U.S. trade deficit narrowed in June, but the trend is unlikely to be sustained amid an artificial intelligence buildout that is heavily reliant on imports. Both imports and exports declined in June, t...
In the balance sheet, the US trade deficit dropped 5.6% to 73 billion dollars, according to data from the Department of Commerce.
Watch US Economy: Trade Deficit Narrows to $73.3 Billion as Imports Fall in June
The US trade deficit narrowed in June as imports fell for the first time since the start of the year. The gap in goods and services trade shrank 5.6% from the prior month to $73.3 billion, while the value of imports declined 1.8% while exports fell 0.9%. Michael McKee reports on Bloomberg Television.
The US trade deficit fell by 5.6 percent in June, reaching $73.3 billion, according to BEA.
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