US Trade Deficit Reached 5-Month Maximum
U.S. trade deficit rose to touch its 5-month peak after exports of soybeans and civilian aircraft dropped and imports reached its high. The Commerce Department reported that trade gap rose 9.5% to 50.1 billion dollars. June’s number was revised down from 46.3 billion dollars to 45.7 billion dollars. Trade deficit with China rose 10% to a maximum of 36.8 billion dollars.
Adjusted for inflation, the trade gap grew from 79.3 billion dollars to 5-month maximum of 82.5 billion dollars in July. Trade added 1.17 percentage points to the economy's 4.2% annualized growth pace in the Q2.
The trade gap with Mexico reduced 25.3% to 5.5 billion dollars In July. The spread with Canada increased 57.6% to 3.1 billion dollars. The trade deficit with the EU surged 50% to a maximum of 17.6 billion dollars.
Exports of goods and services dropped 1.0% to 211.1 billion dollars In July. Soybean exports were down 0.7 billion dollars. Shipments of civilian aircraft dropped 1.6 billion dollars. Imports of goods and services grew 0.9% to a maximum of 261.2 billion dollars in July. The price of imported crude oil held at 64.63 dollars per barrel in July, higher than June’s 62.42 dollars. Imports of automobiles and parts rose as well. Pharmaceutical preparations imports declined 1.3 billion dollars.