U.S. Trade Gap Widened During July

In July, the U.S. trade deficit widened from nearly a low of four years, as exports cooled off and imports made a rebound.

The gap widened by 13.3% from $34.5 billion to $39 billion. Forecasters had predicted the gap would widen to $38.5 billion. During July, Americans bought auto imports at a record level and more gasoline.

An increase in business and consumer demand domestically would most likely prompt companies in the U.S. to keep the same purchases from its trading partners during the third quarter.

During the same period, slower growth globally might weigh on U.S. exports as European and China markets struggle to gain more momentum.

Futures on the stock market extended their earlier losses following the report.

Survey estimates ranged from deficit of $34.8 billion to as high as $42.4 billion. The jump by 13.3% in the gap amounted to the largest since January of 2011 and followed a contraction in June of 21%, which suggest the trend is at some point in between the two. The June and July readings are the smallest consecutive readings since late in 2009.

Imports were up 1.6% in July to $228.5 billion. The U.S., during July imported over $32.5 billion in products related to petroleum, which was the most since last October.

Purchases by consumers of engine, parts and autos jumped to $26.4 billion, the highest ever.

Exports dropped by 0.6% in July to $189.5 billion from June’s $190.4 billion, which was a jump from May of 2.2%.

The reading in July was the second highest ever. The July reduction reflected less capital goods purchases, including engines and airplanes and consumer items like jewelry.

The shortfall in trade, excluding petroleum increased in July to $20.4 billion from June’s $17.2 billion.

Get Analysts' Upgrades and Downgrades Daily - Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.

Latest News

How to Trade on Forex – 8 Steps for Beginners
How to Trade on Forex – 8 Steps for Beginners
Super Nintendo World Theme Park Officially Starts Construction
Super Nintendo World Theme Park Officially Starts Construction
Amazon and Apple Join Foxconn to Secure Chip Business of Toshiba
Amazon and Apple Join Foxconn to Secure Chip Business of Toshiba
Camera Zooms In and Can Recognize Faces
Camera Zooms In and Can Recognize Faces
Netflix Could See 150 Million Worldwide Subscribers
Netflix Could See 150 Million Worldwide Subscribers
LeEco Cutting Over 70% of Staff in U.S. Amidst Pull Back
LeEco Cutting Over 70% of Staff in U.S. Amidst Pull Back


© 2006-2017 Ticker Report. Google+.