U.S. trade deficit remains largely unchanged in June

Trade deficit in the U.S. remained largely unchanged in June, coming in at USD 55.2 billion. May’s deficit was USD 55.3 billion. Consensus expectations were for a slight improvement to USD 54.6 billion. Both exports and imports recorded falls in the month.

Exports of goods dropped 2.7 percent in the month, driven by falls in capital goods, consumer goods and automotive vehicles and parts. Goods imports fell 2.1 percent, as all major categories except other goods dropped. Imports of industrial supplies and materials dropped the most, while consumer goods dropped 1.6 percent and automotive vehicles and parts imports dropped 1.8 percent.

Excluding price effects does not make much change. Export volumes fell 1.9 percent, while import volumes fell 1.3 percent. Services exports fell 0.7 percent while imports rose 0.2 percent in June. Trade deficits with major trading partners came in mixed in June. The deficit with Canada, EU, and China narrowed a bit, but widened slightly with Mexico.

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