The deficit on goods and services stood at $ 70.1 billion, declining 4.3% from June. This is the first drop in three months.
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The US trade deficit narrowed more than expected in July, with lower imports signaling a slowdown in domestic demand linked to fears of the Delta variant, the Commerce Department said Thursday.
This is the first decline in three months, which comes after a record recorded in June when domestic demand was particularly strong.
In total, the goods and services deficit stood at $ 70.1 billion, declining 4.3% from June, with imports down 0.2% to $ 282.9 billion and exports up 1.3% to 212.8 billion. Analysts were forecasting a deficit of $ 74 billion.
Cumulated over the first seven months of the year, the goods and services deficit increased by 37.1%, however, thanks to the recovery after the historic recession caused by the Covid-19 pandemic in 2020.
In July alone, US exports were driven by demand for consumer staples, capital goods, and cars, buses, trucks and auto parts.
In contrast, imports of consumer goods including toys, sports and mobile phones are down, as are imports of cars, engines and auto parts.
By geographic area and for goods only, the deficit is reduced by 7.4% with China, by 34% with Canada and by 7.6% with the European Union.
On the other hand, it increased by 17% with Mexico.
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