US trade deficit in line with expectations in July
The US trade deficit declined slightly less than expected in July, figures released on Thursday showed.
According to data released by the Commerce Department, the trade deficit fell 7.4% month-on-month in July to a seasonally adjusted $41.9bn compared with analysts’ expectations of a $41.8bn.
Exports rose 0.4% to $188.5m, registering the first gain in three months, but fell 4.2% year-on-year, while imports fell 1.1 month-on-month % to $230.4bn.
"The decline in consumer goods imports in July might normally be interpreted as a sign of weakness in domestic demand, but in this case we already know that retail sales were solid in July and motor vehicle sales increased further in August," said Steve Murphy, US economist at Capital Economics.
"Instead, given that we also know manufacturing output increased sharply in July, it appears that the slowdown in inventory building is being achieved as much by a run down in imports as it is a slower pace of domestic production."