The U.S. trade deficit in goods and services dropped 7.5 percent in June as both imports and exports increased for the first time since March. However, the total volume of U.S. trade was down significantly from a year earlier as the COVID-19 pandemic continued to affect global trade flows.
According to trade statistics released Aug. 5 by the Department of Commerce, the monthly trade deficit of $50.7 billion reflected a record 9.4 percent increase in exports to $158.3 billion and a 4.7 percent rise in imports to $208.9 billion. DOC states that the year-to-date deficit was down 7.8 percent from June 2019 as exports fell 15.7 percent and imports lost 14.2 percent.
The deficit in goods trade declined 5.2 percent from May to June to $72.2 billion. Imports of goods were up 5.4 percent to $175.0 billion, including increases of $4.1 billion in passenger cars, $2.7 billion in automotive parts and accessories, and $2.1 billion in trucks, buses, and special purpose vehicles along with decreases of $5.9 billion in non-monetary gold and $2.9 billion in finished metal shapes. Exports of goods were up 14.5 percent to $102.9 billion, including increases of $1.8 billion in automotive parts and accessories, $1.7 billion in passenger cars, $800 million in fuel oil, and $600 million each in civilian aircraft and other industrial machinery.
The services surplus inched up 0.5 percent to $21.5 billion, with imports up 1.5 percent to $33.9 billion and exports up 1.1 percent to $55.4 billion.
SOURCE: Sandler, Travis & Rosenberg Trade Report
Thursday, August 06, 2020