U.S. Trade Deficit Shrank in July
Imports to the U.S. fell 2.9% in July, reflecting declines in American purchases of consumer goods and industrial supplies.
Photo:
Mario Tama/Getty Images
The U.S. trade deficit narrowed in July for the fourth month in a row as global demand for U.S. goods and tourism strengthened, while U.S. shoppers’ appetite for imports weakened.
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The trade gap in goods and services shrank by 12.6% in July from the prior month to a seasonally adjusted $70.65 billion, the Commerce Department said Wednesday.
Exports grew 0.2% to $259.29 billion, helped largely by higher shipments of capital goods like computers and industrial machinery. Spending by foreign visitors, which is counted as a services export, also picked up as Covid-19 travel restrictions eased and more vacationers came to the U.S.
Imports fell 2.9% to $329.94 billion, reflecting declines in American purchases of consumer goods and industrial supplies.
Recent surveys have pointed to a sharp slowdown in global economic growth as higher prices weaken consumer demand and the war in Ukraine scrambles supply chains. A strong dollar makes imports cheaper for U.S. consumers while lifting the cost of U.S. goods abroad, which can hurt exporters and spur inflation abroad.
Imports fell in July for the second month in a row amid weak consumer confidence readings due to high gasoline prices and inflation. While consumers have continued to boost their spending modestly as inflation cuts into their purchasing power, sentiment readings remain sour, according to recent surveys.
Although the U.S. trade deficit has narrowed in recent months, it remains wide by historical comparison. Before the Covid-19 pandemic, the trade deficit hovered for years between $40 billion and $50 billion a month.
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Imports to the U.S. fell 2.9% in July, reflecting declines in American purchases of consumer goods and industrial supplies.
Photo:
Mario Tama/Getty Images
The U.S. trade deficit narrowed in July for the fourth month in a row as global demand for U.S. goods and tourism strengthened, while U.S. shoppers’ appetite for imports weakened.
Ask WSJ
What Are Voters Thinking? Behind the Numbers with WSJ Pollsters
We check in with WSJ pollsters Tony Fabrizio, a Republican, and John Anzalone, a Democrat, on what a new Wall Street Journal poll reveals about which issues are weighing most heavily on voters. Join the conversation at 2 p.m. ET on Sept. 7
The trade gap in goods and services shrank by 12.6% in July from the prior month to a seasonally adjusted $70.65 billion, the Commerce Department said Wednesday.
Exports grew 0.2% to $259.29 billion, helped largely by higher shipments of capital goods like computers and industrial machinery. Spending by foreign visitors, which is counted as a services export, also picked up as Covid-19 travel restrictions eased and more vacationers came to the U.S.
Imports fell 2.9% to $329.94 billion, reflecting declines in American purchases of consumer goods and industrial supplies.
Recent surveys have pointed to a sharp slowdown in global economic growth as higher prices weaken consumer demand and the war in Ukraine scrambles supply chains. A strong dollar makes imports cheaper for U.S. consumers while lifting the cost of U.S. goods abroad, which can hurt exporters and spur inflation abroad.
Imports fell in July for the second month in a row amid weak consumer confidence readings due to high gasoline prices and inflation. While consumers have continued to boost their spending modestly as inflation cuts into their purchasing power, sentiment readings remain sour, according to recent surveys.
Although the U.S. trade deficit has narrowed in recent months, it remains wide by historical comparison. Before the Covid-19 pandemic, the trade deficit hovered for years between $40 billion and $50 billion a month.
SHARE YOUR THOUGHTS
What’s your outlook on global trade? Join the conversation below.
Write to Harriet Torry at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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