DATA SNAP: U.S. July Trade Gap Widens On Deficits With China,
Euro Zone
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July International Trade !Consensus: !
Jul Jun ! $44.0 Bln !
Deficit: $42.00B $41.90Br ! !
Exports: $183.27B $185.18Br !Actual: !
Imports: $225.27B $227.08Br ! $42.00 Bln !
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By Tom Barkley and Sarah Portlock
WASHINGTON--The U.S. trade deficit expanded modestly in July, as the gap with
China hit a record high and exports to the beleaguered euro zone slumped.
The U.S. deficit in international trade of goods and services increased 0.2%
in July to a seasonally adjusted $42.00 billion, the Commerce Department said
Tuesday.
The gap widened less than expected, with economists surveyed by Dow Jones
Newswires forecasting a $44.0 billion deficit in July.
The June gap was revised down to $41.90 billion from an originally reported
$42.92 billion.
The trade deficit with China jumped 7.2% to a new high of $29.38 billion, as
imports from America's second-largest trading partner hit a record $37.93
billion.
The trade gap with China has gained a prominent role in the U.S. presidential
campaign, with Republican challenger Mitt Romney pledging to immediately
declare Beijing a currency manipulator if he defeats President Barack Obama in
November.
The European debt crisis is also taking an increasing toll on the U.S. export
engine, as sales to countries using the euro slid 14.5% to $14.92 billion. The
trade gap with the euro area grew to $10.19 billion from $7.01 billion the
prior month.
Overall, U.S. exports fell 1.0% to $183.27 billion in July, amid declining
sales abroad of consumer goods, industrial supplies and cars and parts.
Meanwhile, imports decreased 0.8% to $225.27 billion, in large part due to a
continued drop in oil prices. Purchases from overseas of autos and parts were
at a record high.
While the volume of oil imports rose to 275.14 million barrels in July from
263.44 million, the average price of imported crude fell 6.3% to $93.83 per
barrel--the lowest level since March 2011. Oil prices have tumbled more than
$16 over the last three months, after spiking earlier in the spring.
Trade provided a modest boost to U.S. growth during the second quarter of the
year, when the economy expanded at a 1.7% rate, according to the government's
revised gross domestic product reading released last month. The narrowing in
the trade gap added about a third of a percentage point to growth, as exports
rose and imports fell.
But Tuesday's report showed that the real, or inflation-adjusted deficit,
which economists use to measure the impact of trade on GDP, rose to $46.55
billion in July from $43.99 billion the month before.
The government will take into account the revised June trade figures and
other data when it releases its final second-quarter reading of GDP later this
month.
The Commerce Department report on trade can be found at
http://www.census.gov/ft900.
Write to Tom Barkley at tom.barkley@dowjones.com and Sarah Portlock at
sarah.portlock@dowjones.com
(END) Dow Jones Newswires |
