The U.S. trade deficit fell to $42.8 billion in July, the first drop in four months, as exports increased to the highest level in almost two years, the Commerce Department reported today.
July exports of goods and services totaled $153.3 billion, the largest amount since August 2008, and a $2.8 billion increase from June. U.S. imports totaled $196.1 billion, a decrease of $4.2 billion from June.
The trade deficit for June was revised slightly lower to $49.8 billion from $49.9 billion reported last month. The June deficit was the largest since October 2008.
Economists expected the trade deficit would decrease to $47.0 billion in July, according to the median estimate from Thomson Reuters.
Exports of capital goods increased to $38.8 billion and non-petroleum exports increased to $100.9 billion, both the largest increases since August and September 2008 respectively.
July imports from China totaled $33.3 billion, the highest level since October 2008. But the trade deficit with China slipped to $25.9 billion.
U.S. crude oil imports decreased, and the average barrel of oil price fell to $72.09, the lowest price in nine months.
The three months of trade deficit increases, from April through June, weighed heavily on U.S. gross domestic product growth in the second quarter.
According to GDP figures released last month, the trade deficit between imports and exports widened to $536.0 billion in the second quarter. Imports subtracted 4.45 percentage points from GDP growth, the largest subtraction on records dating back to 1947.
