U.S. Trade Deficit Narrows To $73.3 Billion In June, Roughly In Line With Estimates

(RTTNews) - With the value of imports slumping by much more than the value of exports, the Commerce Department released a report on Tuesday showing the U.S. trade deficit narrowed roughly in line with economist estimates in the month of June.

The Commerce Department said the trade deficit shrank to $73.3 billion in June from $77.6 billion in May. Economists had expected the trade deficit to decrease to $73.0 billion.

The narrower trade deficit came amid a sharp pullback in the value of imports, which tumbled by 1.8 percent to $388.0 billion in June after surging by 3.3 percent to $395.3 billion in May.

The report showed a notable decrease in imports of capital goods, including computers and telecom equipment, as well as a slump in imports of pharmaceuticals.

Meanwhile, the Commerce Department said the value of exports slid by 0.9 percent to $314.7 billion in June after plunging 3.2 percent to $317.6 billion in May.

Exports of industrial supplies and materials, particularly crude oil and non-monetary gold, fell sharply, while exports of computers and other goods also declined.

"Lower exports and imports in June don't change the narrative of a growing US economy. We see the latest month's data as merely a 'breather' after the ramp up in recent months," said Nationwide Financial Market Economist Oren Klachkin.

He added, "Under the surface and looking past the idiosyncrasies there are signs of growing US and foreign demand that keep us optimistic about the outlook."

The report also said the goods deficit narrowed to $102.1 billion in June from $106.0 billion in May, while the services surplus crept up to $28.8 billion in June from $28.3 billion in May.