The US trade deficit contracted
sharply in July, posting its biggest drop in 17 months as exports of aircraft
jumped and US demand for imports fell across the board.
The deficit in international trade
of goods and services narrowed by 14% to $42.78bn from a downwardly revised
$49.76bn the month before. U.S. exports expanded 1.8%, the highest level since
August 2008. Imports registered their biggest decline since February of last
year, falling 2.1%.
Exports
Exports of goods and services increased $2.8bn in July to
$153.3bn, reflecting an increase in goods exports. Services exports were
virtually unchanged.
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The increase in goods exports
was mostly accounted for by an increase in capital goods.
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Services exports were virtually
unchanged as decreases in other private services (which includes
items such as business, professional, and technical services, insurance
services, and financial services) and other transportation (which
includes freight and port services) were partly offset by an increase in
travel.
Imports
Imports of goods and services decreased $4.2bn in July to
$196.1bn, reflecting a decrease in goods imports.
Services imports were virtually unchanged.
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The decrease in goods imports
was mostly accounted for by decreases in consumer goods;
automotive vehicles, parts, and engines; and capital goods.
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Services imports were virtually
unchanged as a decrease in royalties and license fees (which were
boosted in June by payments for rights related to the 2010 soccer World Cup)
was partly offset by an increase in travel.
Goods by geographic area (not seasonally adjusted)
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The goods deficit with Canada
decreased from $2.5bn in June to $1.4bn in July. Exports decreased $2.6bn to
$19.7bn, while imports decreased $3.7bn to $21.1bn.
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The goods deficit with China
decreased from $26.2bn in June to $25.9bn in July. Exports increased $0.6bn
to $7.3bn, while imports increased $0.4bn to $33.3bn.
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The goods deficit with the
European Union increased from $7.8bn in June to $9.9bn in July. Exports
decreased $1.6bn to $18.8bn, while imports increased $0.5bn to $28.7bn.
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The goods surplus with Brazil
increased from $0.8bn in June to $1.0bn in July. Exports increased $0.4bn to
$3.4bn, while imports increased $0.2bn to $2.4bn.
The July figures show surpluses, in
billions of dollars, with Hong Kong $1.8 ($2.0 for June), Singapore $1.2 ($1.0),
Australia $0.9 ($1.1), and Egypt $0.4 ($0.2). Deficits were recorded, in
billions of dollars, with China $25.9 ($26.2), European Union $9.9 ($7.8), OPEC
$8.0 ($8.9), Mexico $5.3 ($6.2), Japan $4.9 ($5.2), Germany $3.6 ($3.1), Nigeria
$2.4 ($2.3), Ireland $2.4 ($2.3), Venezuela $1.8 ($1.7), Canada $1.4 ($2.5),
Taiwan $1.0 ($1.3), and Korea $1.0 ($1.1).
