The international trade deficit narrowed in July to $39.5 billion, down $5.2 billion from June, according to the U.S. Census Bureau and the Bureau of Economic Analysis. The narrowing reflected to a $3.4 billion increase in exports along with a $1.8 billion decline in imports.
The goods deficit decreased $5.3 billion to $60.3 billion, while the services surplus decreased $0.1 billion to $20.9 billion.
Exports of goods increased $3.4 billion to $124.1 billion in July, driven almost entirely by an increase in exports of foods (soybeans in particular). Exports of services fell $0.1 billion to $62.3 billion, largely due to declines in transport and travel.
Imports of goods decreased $1.9 billion to $184.4 billion, mostly due to declines in consumer goods, such as pharmaceutical preparations and cell phones. Capital goods trade also fell significantly, as civilian aircraft imports fell by $0.9 billion. Imports of services increased $0.1 billion due to a rise in travel services.
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