July Trade Deficit $41.9B, Down from June’s $45.2B

WASHINGTON - The July trade balance posted a $41.9 billion deficit in data from before markets melted down in mid-August.

The importance of a pre-meltdown reading might be limited, but it is consistent with preliminary data showing a narrowing in the goods deficit.

Exports advanced $600 million on higher autos.

Imports posted a $2.7 billion slide on a $1.5 billion decline in pharmaceuticals (reversing the June jump) and a $1.3 billion drop in cell phones (with a new model coming, not a big surprise). July imports of autos, parts and engines were up $336 million, but the $30.003 billion level was a new record.

These moves were offset only in part by higher oil imports, posted on higher prices and volumes.

The real trade balance also improved from the Q2 average, suggesting trade was poised to add to U.S. Q3 growth before the latest world slowdown.

Unadjusted balances in goods by country included: China at a $31.6 billion deficit after a $31.5 billion shortage in June, Japan at a $5.7 billion shortage after a $5.2 billion deficit, and OPEC at a $146 million deficit after a $361 million surplus.

The July deficit with the European Union was $15.2 billion, the highest on record. Imports surged from Germany and Switzerland, suggesting Americans used the strong dollar to buy luxury goods.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.
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