by Calculated Risk on 9/04/2013 08:50:00 AM
Wednesday, September 04, 2013
Trade Deficit increased in July to $39.1 Billion
The Department of Commerce reported this morning:
[T]otal July exports of $189.4 billion and imports of $228.6 billion resulted in a goods and services deficit of $39.1 billion, up from $34.5 billion in June, revised. July exports were $1.1 billion less than June exports of $190.5 billion. July imports were $3.5 billion more than June imports of $225.1 billion.The trade deficit was close to the consensus forecast of $39.0 billion.
The first graph shows the monthly U.S. exports and imports in dollars through July 2013.
![U.S. Trade Exports Imports](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGti0hVuaeO0gbBD62ID8F-ELUf4jg-tNeaAZRLH8iYSk1IgesHE-66wTFcRzezciJY00t0eTxItDfcNWW8tfH8islZDmElc9MdYkuOsrGK4ZEzv_5EAIJK8SnlNZm4f9IPmU5/s320/TradeJuly2013.jpg)
Imports increased in July, and exports decreased.
Exports are 14% above the pre-recession peak and up 3% compared to July 2012; imports are 1% below the pre-recession peak, and up 1% compared to July 2012 (mostly moving sideways).
The second graph shows the U.S. trade deficit, with and without petroleum, through July.
![U.S. Trade Deficit](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjHfgFA4YLfMiNdXPh1Knhd_44nScTAMBfAXrd6btCaGQkyi8GaIcZ98Zbb_73gnYvF9rfLnPNlhKnHtDmf_CFLAzAhNgCMnlkvSRXeaCgjCzdseTZIvt4kxTD3hoOhHqNSqm6r/s320/TradeDeficitJuly2013.jpg)
Oil averaged $97.07 in July, up slightly from $96.93 in June, and up from $93.71 in July 2012.
The trade deficit with the euro area was $11.0 billion in July, up slightly from $10.8 billion in July 2012.
The trade deficit with China increased to $30.1 billion in July, up from $29.4 billion in July 2012. Most of the trade deficit is related to China and oil. And most of the recent improvement in the trade deficit is related to a decline in the volume of imported petroleum.