JUNE TRADE BALANCE: $56.8bln DEFICIT
The June Trade Balance showed a $56.8bln deficit, less than the $62bln analysts were expecting and following a revised $59.2bln deficit in May (previously reported as $59.8bln).
The net goods deficit fell to $70bln, while services showed a record $13.3bln surplus.
The petroleum deficit was a record $36.4bln, up from $32.8bln last month. On the bright side, the non-petroleum goods deficit – $32.2bln – was the lowest since Feb-03.
The narrower overall June trade deficit came from a 4% increase in exports (to a record $164.4bln), the largest gain since Feb-04. Imports rose 1.8% to a record $221.2bln.
Goods exports rose 5.1% to $116.7bln, led by increases in industrial supplies and materials ($2.8bln), capital goods ($1.2bln), foods, feeds, and beverages ($853mln), consumer goods ($722mln) and automotive vehicles, parts, and engines ($576mln).
Goods imports were up 2% to $186.7bln led by a $5.6bln increase in industrial supplies and materials. However, there were declines in capital goods (-$1.4bln) as well as consumer goods (-$576mln).
Overall, the year-to-date trade balance showed a $351.4bln deficit in June, less than the $358.4bln recorded over the same period last year. The YTD petroleum goods deficit totaled $201.6bln, significantly higher than the $132.5bln in Jun-07. However, the YTD non-petroleum goods deficit decreased to $213.1bln from $264bln at the same time last year.
The trade deficit with China was $21.4bln in June, up from $21bln in May. The Canadian trade deficit was $7.2bln after $5.4bln prior, while the OPEC deficit was a record $18.1bln, up from $17.9bln in May. This reflected June crude prices that averaged a record $117.13/bbl, according to the Bureau of Economic Analysis.