U.S. Goods Trade Deficit Narrows to $96.84 Billion in June
Summary
- A three-month low and the first narrowing since December.
- Exports rebound 2.5% in June, the second m/m gain in three months.
- Imports rise 0.7% m/m vs. a 0.7% May drop.
The advance estimate of the U.S. international trade deficit in goods fell more than expected to $96.84 billion in June from $99.37 billion in May, data from the U.S. Census Bureau showed. This was the first time since December that the goods deficit narrowed. The June deficit was the smallest in three months but larger than a $88.71 billion shortfall in June 2023. A deficit of $98.0 billion for June had been expected by the Action Economics Forecast Survey. The deficit had reached a peak of $120.72 billion in March 2022. In Q2'24, the goods trade deficit widened to $294.41 billion, the largest since Q2'22, after rising to $273.77 billion in Q1'24. The monthly deficit averaged $98.14 billion in Q2'24, the biggest since Q2'22, up from an average of $91.26 billion in Q1'24.
Total exports increased 2.5% m/m (5.7% y/y) in June, up for the second month in three, following a 1.8% drop in May. However, exports had fallen 4.9% since a July 2022 high. The increase in exports in June reflected monthly gains of all the end-use exports categories. These included exports m/m rises of 4.9% (6.6% y/y) in foods, feeds & beverages, 3.6% (8.6% y/y) in capital goods excluding autos, 3.5% (-2.3% y/y) in automotive vehicles & parts, 1.6% (4.5% y/y) in industrial supplies & materials, 1.2% (7.5% y/y) in nonfood consumer goods excluding autos, and 1.1% (4.8% y/y) in other goods.
Total imports rose 0.7% m/m (6.9% y/y) in June, the second m/m rise in three months, reversing a 0.7% decline in May. Nevertheless, imports had fallen 6.9% since a March 2022 high. The rise in imports in June reflected imports m/m increases of 3.3% (6.2% y/y) in nonfood consumer goods excluding autos, 2.7% (9.3% y/y) in other goods, and 2.6% (14.0% y/y) in capital goods excluding autos. To the downside, imports for the following categories fell m/m in June: industrial supplies & materials (-3.8%; +1.0% y/y), foods, feeds & beverages (-1.6%; +5.3% y/y), and automotive vehicles & parts (-0.6%; +3.5% y/y).
The advance international trade data can be found in Haver's USECON database. The expectation figure is from the Action Economics Forecast Survey, which is in AS1REPNA.
Winnie Tapasanun
AuthorMore in Author Profile »Winnie Tapasanun has been working for Haver Analytics since 2013. She has ~20 years of working in the financial services industry. As Vice President and Economic Analyst at Globicus International, Inc., a New York-based company specializing in macroeconomics and financial markets, Winnie oversaw the company’s business operations, managed financial and economic data, and wrote daily reports on macroeconomics and financial markets. Prior to working at Globicus, she was Investment Promotion Officer at the New York Office of the Thailand Board of Investment (BOI) where she wrote monthly reports on the U.S. economic outlook, wrote reports on the outlook of key U.S. industries, and assisted investors on doing business and investment in Thailand. Prior to joining the BOI, she was Adjunct Professor teaching International Political Economy/International Relations at the City College of New York. Prior to her teaching experience at the CCNY, Winnie successfully completed internships at the United Nations. Winnie holds an MA Degree from Long Island University, New York. She also did graduate studies at Columbia University in the City of New York and doctoral requirements at the Graduate Center of the City University of New York. Her areas of specialization are international political economy, macroeconomics, financial markets, political economy, international relations, and business development/business strategy. Her regional specialization includes, but not limited to, Southeast Asia and East Asia. Winnie is bilingual in English and Thai with competency in French. She loves to travel (~30 countries) to better understand each country’s unique economy, fascinating culture and people as well as the global economy as a whole.
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