US Trade Deficit Narrows in July


US trade gap decreased for the third straight month to USD 40.55 billion in July from USD 40.8 billion in June as exports rose 0.9 percent while imports grew at a slower 0.7 percent.

In July, the goods deficit decreased $0.2 billion from June to $60.2 billion, and the services surplus was virtually unchanged at $19.6 billion. Exports of goods increased $1.8 billion to $138.6 billion, and imports of goods increased $1.5 billion to $198.8 billion. Exports of services increased $0.1 billion to $59.4 billion, and imports of services were virtually unchanged at $39.8 billion.

The goods and services deficit increased $1.1 billion from July 2013 to July 2014. Exports were up $8.1 billion, or 4.3 percent, and imports were up $9.2 billion, or 4.0 percent. The June to July increase in exports of goods reflected increases in automotive vehicles, parts, and engines ($1.7 billion); industrial supplies and materials ($1.3 billion); and capital goods ($0.4 billion). Decreases occurred in consumer goods ($0.6 billion) and foods, feeds, and beverages ($0.6 billion). Other goods were virtually unchanged.

The June to July increase in imports of goods reflected increases in automotive vehicles, parts, and engines ($1.4 billion); other goods ($0.5 billion); industrial supplies and materials ($0.5 billion); and foods, feeds, and beverages ($0.1 billion). Decreases occurred in consumer goods ($0.5 billion) and capital goods ($0.3 billion).

The July 2013 to July 2014 increase in exports of goods reflected increases in automotive vehicles, parts, and engines ($2.8 billion); capital goods ($1.5 billion); consumer goods ($0.7 billion); other goods ($0.5 billion); foods, feeds, and beverages ($0.3 billion); and industrial supplies and materials ($0.1 billion).

The July 2013 to July 2014 increase in imports of goods reflected increases in capital goods ($3.5 billion); automotive vehicles, parts, and engines ($2.8 billion); foods, feeds, and beverages ($1.3 billion); consumer goods ($0.7 billion); and other goods ($0.5 billion). A decrease occurred in industrial supplies and materials ($0.6 billion).

Exports of services increased $0.1 billion from June to July. The increase reflected increases of less than $0.1 billion in several categories of services.

Imports of services were virtually unchanged from June to July. An increase in other business services ($0.1 billion) was mostly offset by a decrease in charges for the use of intellectual property ($0.1 billion), which decreased due to higher payments in June than in July for the rights to broadcast the 2014 soccer World Cup. Changes in the other categories of services imports were relatively small.

The July 2013 to July 2014 increase in exports of services was $2.4 billion or 4.2 percent. The largest increases were in travel (for all purposes including education) ($1.0 billion), in transport ($0.6 billion), which includes freight and port services and passenger fares, in other business services ($0.4 billion), and in financial services ($0.4 billion).

The July 2013 to July 2014 increase in imports of services was $1.3 billion or 3.5 percent. The largest increases were in travel (for all purposes including education) ($0.7 billion) and in other business services ($0.5 billion).

US Bureau of Economic Analysis | Joana Taborda | joana.taborda@tradingeconomics.com
9/4/2014 8:25:13 PM