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08/08/2023 20:41

US trade deficit narrows in June as imports decline

In June, the trade deficit of the United States narrowed as imports fell to their lowest point in over 1-1/2 years, which could potentially indicate a slowdown in domestic demand. The Commerce Department revealed that the trade deficit shrank by 4.1%, reaching $65.5 billion. The figures for May were revised, showing a narrower trade gap of $68.3 billion compared to the previously reported $69.0 billion. Economists surveyed by Reuters had predicted the trade deficit to contract to $65 billion.

Trade had a minor negative impact on the country's gross domestic product (GDP) during the second quarter, breaking a streak of four consecutive quarters of contributing to growth. The economy expanded at an annualized rate of 2.4% from April to June. Imports of both goods and services saw a decline of 1.0%, totaling $313.0 billion, the lowest since November 2021. Specifically, goods imports dropped by 1.2% to $253.3 billion, marking the lowest level since October 2021. Exports experienced a marginal dip of 0.1%, amounting to $247.5 billion. Goods exports similarly slipped by 0.1% to $165.1 billion.