The US trade deficit shrank in June as exports surged to a record high $191 billion, while imports shrank by almost $6 billion to $225 billion. According to figures released yesterday by the Department of Commerce, the trade deficit for the month reached $34.2 billion, or almost 23 percent lower compared to the $44.1 billion in May, which recorded the lowest trade deficit since October 2009.
The May to June increase in exports reflected an increase in industrial supplies and materials of $1.5 billion; capital goods, $1.5 billion; consumer goods, $1 billion; food products, animal feed, and beverages, $0.3 billion; and other goods $0.3 billion. Leading the export list were aircraft engines, telecommunications equipment, heavy machinery and farm goods with US made automotive vehicles, parts and engines seeing a decrease of $0.4 billion in the overseas sales during the month.
On the imports side, the 2.5 percent May to June decrease in imports of goods reflected decreases in industrial supplies and materials, $2.5 billion; consumer goods, $1.6 billion; ‘other goods,’ $1.2 billion; food products, animal feed, and beverages, $0.4 billion; and automotive vehicles, parts, and engines $0.3 billion. The volume of capital goods imports was virtually unchanged, while oil imports declined to their lowest level in more than two years.