U.S. Goods & Services trade deficit (June)

The strong greenback continues to inflict pain on exporters. Exports slipped 0.1% in June and are down 3.6% y/y, falling for the 6th straight month, but it was the smallest decline in a year and a half. Imports grew for the first time in three months, up 1.2% but they're still 2.3% below a year ago. Auto parts imports rose for the 2nd month in a row but even excluding the autos, consumer goods imports jumped 3.5%.

The goods & services trade deficit widened for the 2nd consecutive month, although June's $43.8 bln gap was almost exactly what the BEA had assumed, and May's shortfall was revised down to $40.9 bln. In real terms, exports were flat while imports were up 1.0%.

"Looking at the big upward revision to May's construction spending, better factory inventories, and trade suggests that, we could see an upward revision from 2.3% to something closer to our original estimate of 3%", says BMO Economics.