US Trade Deficit Narrows in July
The US trade deficit dropped more than expected in July as exports reached their highest level in two years, boosting hopes for the US economic recovery.
The trade deficit dropped to 42.8 billion dollars in July, a 14 percent decline from the previous month's revised figure of 49.8 billion dollars -- its highest level in 20 months, the Department of Commerce said.
The total July exports rose 1.8 percent to 153.3 billion dollars from June to its highest level since August 2008 on the back of strong sales of aircraft, industrial machinery, computers and telecommunications equipment, it said.
Imports fell 2.1 percent to 196.1 billion dollars in July from the previous month.
The July deficit beat most analysts' expectations of 47.3 billion dollars.
Traditionally, increasing US imports are seen as heralding greater demand from American consumers, who play a critical role in fueling local and global growth.
The US trade deficit with China also fell to 25.92 billion dollars from 26.15 billion dollars in June as lawmakers increasingly call for steps against what they see as unfair trade practices by China.
9/9/2010 10:24:43 PM