U.S. Trade Deficit Widens Amid Drop In Exports, Increase In Imports
Reflecting a decrease in exports and an increase in imports, the Commerce Department released a report on Friday showing the U.S. trade deficit widened in the month of June.
The report said the trade deficit widened to $46.3 billion in June from a revised $43.2 billion in May. The deficit had been expected to widen to $46.5 billion from the $43.1 billion originally reported for the previous month.
«The outcome was close to what we were expecting based on the advance economic indicators reports and the assumptions made by the BEA in calculating Q2 GDP,» said Paul Ashworth, Chief U.S. Economist at Capital Economics.
The wider trade deficit was partly due to a pullback in the value of exports, which fell by 0.7 percent to $213.8 billion in June after surging up by 1.9 percent to $215.3 billion in May.
Notable decreases in imports of consumer goods, capital goods, and passenger cars were partly offset by a jump in exports of industrial supplies and materials.
The report also said the value of imports climbed by 0.6 percent to $260.2 billion in July after rising by 0.5 percent to $258.5 billion in June.
Imports of drugs and crude oil showed significant increases during the month, more than offsetting a drop in imports of capital goods.
Amid President Donald Trump's escalating trade dispute with China, the Commerce Department said the U.S. had a $32.5 billion trade deficit with the communist country in June.