WASHINGTON – The nation’s trade deficit narrowed in June by $1.1 billion or 1.7 percent as imports of goods and services exceeded exports by $58.1 billion in June, compared with the revised May deficit of $59.2 billion, the U.S. Census Bureau and Bureau of Economic Analysis said in a joint report today.
Imports and exports both reached new highs as the gap continued its uneven retreat from last August’s record $68.9 billion.
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The news surprised analysts, who had expected the trade gap to widen to $61 billion in June, according to the median forecast from a survey of 71 economists by
Bloomberg News. Their estimates – all higher than the shortfall reported by the BEA – ranged from $58.6 billion to $63.5 billion.
The weaker dollar and faster growth in Asia, Europe and Latin America both helped boost demand for U.S. goods to new highs, Bloomberg said. In the second quarter, China’s economy expanded 11.9 percent compared with a year earlier and Japan’s expanded by 2.3 percent, while the U.S. economy grew 1.8 percent.
Total U.S. exports increased by $2.0 billion in June to a record $134.5 billion. Exports of goods increased by $1.7 billion over the previous month’s to $95.2 billion, as increases in imports of industrial materials, other goods, auto vehicles and parts, and capital goods more than offset decreased shipments of consumer goods. Meanwhile, services exports rose $0.2 billion to a record $39.4 billion, led by increases in “other private services” (a category including professional, technical, insurance and financial services) and travel.
“The growth in exports is substantial and reflects the health of the global economy,” Drew Matus, senior economist at Lehman Brothers Holdings Inc. in New York, told Bloomberg.
Total U.S. imports edged up $0.9 billion in June to $192.7 billion. Goods imports increased by $0.8 billion to $162.7 billion, as increases in imports of auto vehicles and parts, capital goods, and other goods more than offset decreased shipments of consumer goods. Meanwhile, imports of services rose $0.2 billion to $30.0 billion, led by other private services.
The nation’s trade gap with China – now the No. 2 U.S. trade partner, after Canada – rose to $21.2 billion in June from $20 billion in May.
Compared with June 2006, the trade gap narrowed by $6.4 billion. Total U.S. exports rose $13.5 billion or 11.2 percent, while total imports fell by $7.1 billion or 3.8 percent.
Additional information, including the full U.S. International Trade in Goods and Services report, is available at www.bea.gov.
