Trade Deficit Narrowsby Tim Manni
According to the Census Bureau, the national trade deficit of goods and services narrowed to $56.8 billion in June, down from $59.2 billion in May. Exports increased $6.4 billion (4%) in June to $164.4 billion, from $158 billion in May. Imports rose $3.9 billion (1.8%) to $221.2 billion in June, from $217.2 billion in May.
A weak dollar continued to fuel the export of US products to the foreign market. According to Bloomberg, the dollar has dropped 24% against the Euro in the past five years.
Record imports of petroleum in June helped goose import numbers by nearly two percent higher than in May. The US reportedly spent $44.5 billion on petroleum in June, when a barrel of oil cost over $117, up $11 from May.
Expect imports to increase again in July’s reports when a barrel of crude peaked at over $147. The dollar is showing signs of recovery, but continue to expect cheap US products to attract a foreign eye.