Reflecting an increase in exports and a decrease in imports, the Commerce Department released a report on Friday showing that the U.S. trade deficit narrowed by more than expected in the month of June.
The report said the trade deficit narrowed to $43.6 billion in June from $46.4 billion in May. Economists had expected the deficit to narrow to $45.0 billion.
The narrower deficit was primarily due to a continued increase in the value of exports, which surged up by 1.2 percent to $194.4 billion in June after rising by 0.4 percent to $192.0 billion in May.
Exports of capital goods, soybeans, and automotive vehicles and parts saw notable increases, more than offsetting a drop in exports of pharmaceutical preparations.
Meanwhile, the report said the value of imports dipped by 0.2 percent to $238.0 billion in June after edging down by 0.1 percent to $238.4 billion in May.
The modest decrease in imports reflected notable declines in imports of crude oil and cell phones and other household goods. On the other hand, imports of passenger cars jumped.
"Looking ahead, exports look set to continue benefiting from strong global growth and the weaker dollar," said Andrew Hunter, U.S. economist at Capital Economics.
He added, "Accordingly, even allowing for an upturn in imports, we expect net trade to be broadly neutral for growth over the rest of the year."
The Commerce Department also said the goods deficit narrowed to $65.2 billion in June from $67.4 billion in May, while the services surplus widened to $21.6 billion from $21.0 billion.
by RTT Staff Writer
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