The U.S. Department of Commerce reported that the international trade gap narrowed in July, which reflects a higher demand for U.S. goods overseas. The trade gap reads at -$40.5 billion, which beat the Bloomberg estimate of -$42.3 billion. The Wall Street Journal economists had forecast a deficit of -$42.5 billion.
July saw gains in both categories, as exports totaled $198 billion and imports totaled $238.6 billion. Ultimately this is a shrinkage of 0.6%, which reflects a higher rise in exports, from June. The July goods deficit decreased to $60 billion from the June level of $60.2 billion, and the services surplus remained unchanged at $19.6 billion.
Exports of goods increased to $138.6 billion while imports of good increased to $198.8 billion. Exports of services increased slightly to $59.4 billion and imports of services remained unchanged at $39.8 billion. The notable increases in exported goods were automotive vehicles, industrial supplies and capital goods. At the same time, consumer goods, foods, feeds and beverages decreased in exports.
Monthly reports of trade deficits rarely move the markets. Still, these show a barometer of how goods and services are being sold into and out of the country.
READ ALSO: Companies That Control the World's Food
Filed under: Economy