US Trade Deficit Widened by Less than Expected in July
![Cargo ship in New Jersey Cargo ship in New Jersey](/sites/default/files/styles/article_full_width_image/public/2023-09/Ship-NJ-1200.jpg)
[Stay on top of transportation news: Get TTNews in your inbox.]
The U.S. trade deficit widened in July by less than forecast, reflecting an increase in exports of cars and services.
The shortfall in goods and services trade grew to $65 billion from a revised $63.7 billion in the prior month, Commerce Department data showed Sept. 6. The figures aren’t adjusted for inflation. The median estimate in a Bloomberg survey of economists called for a $68 billion deficit.
The value of exports rose 1.6%, while imports increased 1.7%. Exports of industrial supplies and autos increased in the month. The advance in imports reflected a rise in consumer goods — largely cellphones and household goods — as well as capital equipment.
Resilient household demand — illustrated recently by robust retail sales — is encouraging merchants to boost orders with foreign suppliers. Imports may climb further in coming months as retailers prepare for the holiday shopping season.
![Chart of US trade deficit](/sites/default/files/styles/convert_to_webp/public/2023-09/Deficit-chart-650.jpg.webp)
Despite the monthly advance, exports are down 3.5% from a year earlier, constrained by tepid overseas demand. The data will help shape estimates for third-quarter gross domestic product. The government’s latest growth estimate showed net exports weighed on second-quarter GDP for the first time since early 2022.
Travel exports — or spending by visitors to the U.S. — increased 3.6% to the highest since the end of 2019. The U.S. merchandise-trade deficit with China widened 5.4% to $24 billion.
— With assistance from Jordan Yadoo.
Want more news? Listen to today's daily briefing below or go here for more info: