July Trade Deficit $44.8B, Down From $51.6B

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.

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