Updated: 04-Aug-17 09:38 ET

June Trade Balance

Updated: 04-Aug-17 09:38 ET

Highlights

• The trade balance report for June showed a narrowing in the trade deficit to $43.6 billion (Briefing.com consensus -$44.9 bln) from an upwardly revised $46.4 billion (from -$46.5 bln) in May.

Key Factors

• The narrowing deficit was the result of exports being $2.4 billion more than May exports and imports being $0.4 billion less than May imports.
• Capital goods, except automotive (+$0.8 bln), led the export increase while industrial supplies and materials (-$1.06 billion), pressured by a $1.41 billion decrease in crude oil imports, drove the import decline.
• The deficit with Mexico decreased $1.2 billion to $5.5 billion in June while the deficit with China increased $1.2 billion to $31.3 billion in June

Big Picture

• The key takeaway from the report is that it should factor favorably in the revision to Q2 GDP.

Category	JUN	MAY	APR	MAR	FEB
Trade Deficit	-$43.6B	-$46.4B	-$47.6B	-$45.3B	-$44.9B
Exports	$194.4B	$192.0B	$191.2B	$191.5B	$191.7B
Imports	$238.0B	$238.4B	$238.8B	$236.7B	$236.6B