MISS: The US Trade Deficit Widened To $53 Billion

The U.S. trade deficit increased to $53.1 billion in June from $50.8 billion (revised). It is the widest deficit since 2008.

Analysts were looking for a decrease to $48 billion.

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Goods and Services

  • Exports decreased to $170.9 billion in June from $175.0 billion in May. Goods were $121.2 billion in June, down from $125.3 billion in May, and services were $49.6 billion in June, down from $49.7 billion in May.
  • Imports decreased to $223.9 billion in June from $225.8 billion in May. Goods were $188.8 billion in June, down from $190.7 billion in May, and services were $35.1 billion in June, virtually unchanged from May.
  • For goods, the deficit was $67.6 billion in June, up from $65.4 billion in May. For services, the surplus was $14.5 billion in June, down from $14.6 billion in May.

Goods by Category (Census basis)

  • The May to June decrease in exports of goods reflected decreases in industrial supplies and materials ($2.0 billion); capital goods ($1.5 billion); foods, feeds, and beverages ($0.8 billion); and other goods ($0.5 billion). An increase occurred in consumer goods ($0.7 billion). Automotive vechicles, parts, and engines were virtually unchanged.
  • The May to June decrease in imports of goods reflected decreases in industrial supplies and materials ($2.2 billion); automotive vechicles, parts, and engines ($0.2 billion); capital goods ($0.1 billion); and consumer goods ($0.1 billion). Increases occurred in other goods ($0.7 billion) and foods, feeds, and beverages ($0.1 billion).

Services by Category

  • Services exports were virtually unchanged from May to June. Decreases in passenger fares ($0.1 billion) and other transportation ($0.1), which includes freight and port services, were mostly offset by an increase in other private services ($0.2 billion), which includes items such as business, professional, and technical services, insurance services, and financial services. Changes in the other categories of services exports were small.
  • Services imports were virtually unchanged from May to June. The changes in all categories of services imports were small and mostly offsetting.

Goods by Geographic Area (Not Seasonally Adjusted)

  • The goods deficit with Canada increased from $2.7 billion in May to $2.8 billion in June. Exports decreased $0.3 billion (primarily fuel oil, passenger cars, and fertilizers) to $24.2 billion, while imports decreased $0.1 billion (primarily nonmonetary gold, petroleum products, and fertilizers) to $27.1 billion.
  • The goods deficit with China increased from $25.0 billion in May to $26.7 billion in June. Exports decreased $0.1 billion (primarily raw cotton, passenger cars, and pulpwood and woodpulp) to $7.7 billion, while imports increased $1.6 billion (primarily computers, apparel, and household goods) to $34.4 billion.
  • The goods deficit with Japan increased from $2.6 billion in May to $4.0 billion in June. Exports decreased $0.3 billion (primarily generators, fish and shellfish, and metallurgical grade coal) to $5.4 billion, while imports increased $1.1 billion (primarily passenger cars, computer accessories, and photo equipment) to $9.5 billion.

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