US Trade Deficit at 5-Month Low

US trade gap narrowed to USD 41.86 billion in July of 2015 from an upwardly revised USD 45.21 billion in June. It is the lowest deficit since February as exports rose 0.4 percent while imports went down 1.1 percent.

Total exports rose USD 0.8 billion to USD 188.5 billion. Exports of goods increased USD 0.6 billion to USD 128.2 billion, driven by sales of automotive vehicles, parts, and engines (up USD.6 billion), industrial supplies and materials (up USD 0.3 billion) and nonmonetary gold (up USD 0.3 billion) while shipments of consumer goods decreased USD 0.4 billion. Exports of services increased USD 0.2 billion to USD 60.3 billion in July. Financial services increased USD 0.1 billion. Other business services, which includes research and development services; professional and management services; and technical, trade-related, and other services, increased USD 0.1 billion.

Total imports fell USD 2.5 billion to USD 230.4 billion. Imports of goods decreased USD 2.7 billion to USD 189.6 billion, driven by lower purchases of consumer goods (down USD 2.6 billion), pharmaceutical preparations (down USD 1.5 billion) and cell phones and other household goods (down USD 1.3 billion). In contrast, imports of services increased USD 0.2 billion to USD 40.8 billion in July. Travel (for all purposes including education) increased USD 0.1 billion. Transport, which includes freight and port services and passenger fares, increased USD 0.1 billion.

Among trading partners, exports to China fell 1.9 percent and imports edged down 0.2 percent. Sales to Canada fell 8.3 percent, those to the European Union went down 5.3 percent and sales to Brazil dropped to a 5-1/2-year low. 

US Trade Deficit at 5-Month Low

The Commerce Department | Joana Taborda |
9/3/2015 2:30:10 PM