U.S. Goods Trade Deficit Narrows for the Fourth Straight Month in July
Summary
- $89.1 billion deficit in July, lowest since October 2021.
- Exports decline 0.2% m/m following five straight monthly increases.
- Imports drop for the fourth consecutive month.
The advance estimate of the U.S. international trade deficit in goods narrowed to $89.1 billion in July from $98.6 billion in June, according to the U.S. Census Bureau. This was the fourth straight month in which the goods deficit had narrowed. A $98.1 billion deficit had been expected by the Action Economics Forecast Survey. The goods trade deficit shrank to $308.9 billion in Q2'22 from $338.8 billion in Q1'22. The narrower deficit showed net exports added 1.4%-points to Q2 GDP growth after having subtracted 3.2%-points in Q1.
Total exports eased 0.2% m/m (+22.9% y/y) in July, the first monthly decline since January, after a 2.1% increase in June. However, exports have risen 16.0% since January. Total imports slid 3.5% (+15.4% y/y) in July, the fourth successive m/m slide, after a 0.4% decline in June. Imports have fallen 8.2% in the past four months.
The decline in exports in July reflected exports m/m drops of 8.1% (+16.5% y/y) in foods, feeds & beverages, 3.4% (+7.8% y/y) in consumer goods excluding autos, and 2.3% (+44.0% y/y) in industrial supplies. To the upside, exports of other goods (10.7% m/m; 24.2% y/y), automotive vehicles & parts (6.3% m/m; 13.3% y/y) and capital goods excluding autos (4.4% m/m; 8.4% y/y) posted their monthly gains.
The slide in imports in July reflected imports m/m drops of 11.9% (-15.6% y/y) in other goods, 10.4% (+11.2% y/y) in consumer goods excluding autos, 5.3% (+7.9% y/y) in foods, feeds & beverages, and 2.9% (+29.7% y/y) in industrial supplies. In contrast, imports of automotive vehicles & parts (5.8% m/m; 12.8% y/y) and capital goods excluding autos (0.5% m/m; 15.3% y/y) registered their monthly increases.
The advance international trade data can be found in Haver's USECON database. The expectation figure is from the Action Economics Forecast Survey, which is in AS1REPNA.
Winnie Tapasanun
AuthorMore in Author Profile »Winnie Tapasanun has been working for Haver Analytics since 2013. She has ~20 years of working in the financial services industry. As Vice President and Economic Analyst at Globicus International, Inc., a New York-based company specializing in macroeconomics and financial markets, Winnie oversaw the company’s business operations, managed financial and economic data, and wrote daily reports on macroeconomics and financial markets. Prior to working at Globicus, she was Investment Promotion Officer at the New York Office of the Thailand Board of Investment (BOI) where she wrote monthly reports on the U.S. economic outlook, wrote reports on the outlook of key U.S. industries, and assisted investors on doing business and investment in Thailand. Prior to joining the BOI, she was Adjunct Professor teaching International Political Economy/International Relations at the City College of New York. Prior to her teaching experience at the CCNY, Winnie successfully completed internships at the United Nations. Winnie holds an MA Degree from Long Island University, New York. She also did graduate studies at Columbia University in the City of New York and doctoral requirements at the Graduate Center of the City University of New York. Her areas of specialization are international political economy, macroeconomics, financial markets, political economy, international relations, and business development/business strategy. Her regional specialization includes, but not limited to, Southeast Asia and East Asia. Winnie is bilingual in English and Thai with competency in French. She loves to travel (~30 countries) to better understand each country’s unique economy, fascinating culture and people as well as the global economy as a whole.
More Economy in Brief
