The trade deficit in July increased by 1.7% to -$65.1 billion vs an Econoday consensus estimate of -64.1 billion.
The Census Bureau revised June slightly, to -64.0 billion from -63.9 billion.
Third-quarter GDP is off to a slow start, at least for international trade in goods where the July trade gap widened more than $1 billion to $65.1 billion. Exports fell 1.3 percent and were pulled down by a sharp fall in vehicles and also consumer goods which are two weak categories for the US. Helping to ease the effect of exports was a 0.3 percent decline in imports where foreign vehicles, which are usually in strong demand, fell 2.8 percent while industrial supplies were down 1.7 percent. July’s trade report including services will be posted next week.
Deficits subtract from GDP, but the deficit increase is so small as to be nearly meaningless.
This will not impact GDP measurements more than a tick or two.
Mike “Mish” Shedlock
Paid for with $65.1 billion in Monopoly Money.
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Definitely needs subsidising, a Boardgame Monetary Dissapearance Compensatory Schedule For Involuntary Participants (also referred to as the “Don’t Collect 200 Bill”)
It’s part of the Equal Opportunity Loss Guaranteed scheme, a Social Enterprise opening soon near you.
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When someone weighs 500 pounds … it is impossible to notice a couple of pounds lost … or gained.
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Export markets are contracting rapidly. When the US consumer sneezes Asia, Europe, and South America get pneumonia.
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Reblogged this on World4Justice : NOW! Lobby Forum..
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