The U.S. July trade deficit deteriorated slightly more than expected to $39.1 billion from an upwardly-revised deficit in June of $34.5 billion (previously estimated at $34.2 billion), according to figures released this morning by the U.S. Commerce Department. Expectations going into the report were for a July deficit of $38.6 billion.
Expectations of a deterioration were largely based on the assumption of a likely reversal of June’s strong rise in exports and fall in imports which was largely realized in today’s report. The gain in imports was relatively broadly based led by increases in industrial supplies (3.6%) and auto vehicles and parts (3.1%). The former was boosted by a rise in oil imports.
The Commerce Department also said the decline in exports was led by drops in consumer goods ex autos (8.2%) and capital goods ex autos (3.5%). Some offset was provided by a 4.0% rise in industrial supplies and materials that was helped by higher petroleum exports.
Excluding the impact of prices, the real trade deficit (in chained 2005 dollars, Census basis) showed a similar pattern with the deficit deteriorating to $47.7 billion from $43.8 billion on the basis of imports rising 1.6% and exports falling 1.0%
