WASHINGTON – The U.S. trade balance shrank 13.1% in July to $44.8 billion as exports increased and import prices for petroleum products eased, the Commerce Department reported Thursday.
Exports rebounded, increasing by $6.2 billion, or 3.6%, following two months of declines. The gain was led by more exports of industrial supplies, capital goods and autos.
Imports eased for the second month in a row, declining by $500 million, or 0.2%.
July's drop in the trade deficit was the largest since February 2009. The June trade deficit was revised to $51.6 billion from $53.1 billion reported last month.
The average barrel of imported crude oil fell to $104.27 from $106 in June, the second straight monthly decline. Crude oil prices rose for eight consecutive months through May.
Economists polled by Thomson Reuters predicted a $51 billion deficit.
The July trade deficit with China increased to $27 billion, the highest in 10 months, as imports from China rose to $35.1 billion. Exports to South and Central America increased to $14.7 billion, the highest levels on record.