The US trade deficit narrowed again in June, and more than expected, with exports continuing to climb to a new record high, while imports fell amid slowing domestic demand . In June, the goods and services deficit with the rest of the world stood at $79.6 billion, according to Commerce Department data released Thursday.
This represents a sharp decrease of 6.2% compared to May, for which the data has also been revised downwards (84.9 billion instead of the 85.5 billion initially announced). The deficit was thus reduced more than expected, since analysts were counting on 81.7 billion dollars.
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“The US trade deficit narrowed in June for the third month in a rowcommented economist Mahir Rasheed, of Oxford Economics, in a note. Over one year, on the other hand, it widened, increasing by 33.4%.
More exports, less imports
Thus, in June, exports increased by 1.7% compared to May, reaching the unprecedented level of 260.8 billion dollars. American companies have thus sold internationally more industrial equipment, food and beverages, but also travel and transport. Imports fell by 0.3% (340.4 billion dollars), due to weaker demand from American consumers and businesses, which are facing high inflation and rising prices. interest rate.
In particular, they bought fewer cars, engines and spare parts from abroad. Imports of services, on the other hand, increased slightly, for tourism, transport and business services. The trade deficit, however, widened with China, the United States’ main rival. And “the ongoing slowdown in the economy will further dampen trade flows in the second half of 2022“, anticipates Mahir Rasheed.
Recession fears in the United States have indeed increased, as the country saw its gross domestic product (GDP) contract in the first two quarters, and the United States central bank (Fed) raises rates to provoke a slowdown. economy, and thus lower inflation.
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