EmailThe U.S. trade deficit narrowed from a downwardly revised $48.0 bln in May to $42.9 bln in June. The Briefing.com consensus expected the deficit to fall to only $47.5 bln. The BEA assumed that the trade deficit remained at roughly $48.0 bln in June in the advance Q2 2012 GDP report. Since the deficit actually came in notably below the BEA estimate, second quarter GDP will be revised higher in the second estimate on the trade data. The goods deficit fell to $57.5 bln in June from $62.9 bln in May.
The services surplus declined from $14.9 bln in May to $14.6 bln in June. Exports increased $1.7 bln from $183.3 bln in May to $185.0 bln in June. Most of the gain was the result of stronger exports of consumer goods ($0.865 bln) and autos ($0.695 bln). Food exports declined $0.792 bln in June, but are expected to rise over the next few months as higher prices drive up export levels. Imports fell $3.5 bln to $227.9 bln in June from $231.4 bln in May. The decline was driven by lower oil prices. Petroleum-based imports fell $2.3 bln from $35.2 bln in May to $32.9 bln in June. Demand for capital goods (-$1.286 bln) and consumer goods (-$0.569 bln) also weighed down import levels.
