EmailThe U.S. trade deficit widened for the second consecutive month, increasing from $50.8 billion in May to $53.1 billion in June. The Briefing.com consensus expected the trade deficit to narrow to $48.0 billion.
The goods deficit increased from $65.4 billion in May to $67.6 billion in June while the services surplus fell from $14.6 billion to $14.5 billion during the same time periods. June exports -- which should have been buoyed by the weak dollar -- fell from $175.0 billion in May to $170.9 billion. The lack of growth in exports suggests that global demand for U.S. products has weakened and that future export growth is not assured. Imports fell from $190.7 billion in May to $188.8 billion in June.
Almost 90% of the drop in imports was due to the decline in oil prices. Imports of petroleum products fell from $39.9 billion in May to $38.2 billion in June. The BEA assumed that the trade deficit widened to approximately $52.0 billion in June. This was the second data point released this week that came in under BEA projections. (The August 10 wholesale inventory report showed inventories increased only 0.6% in June, well below the BEA estimate of 1.0%.) At this juncture, it is becoming apparent that we will see a downward revision in the second estimate for Q2 GDP.
