US Trade Deficit Rises In July, Beats Estimates As Oil Imports Slide

The US trade deficit widened in July, growing by 0.3% from a downward revised $43.5 billion to $43.7 billion, and beating expectations of $44.7 billion, as exports decreased more than imports. The goods deficit decreased less than $0.1 billion in July to $65.3 billion. The services surplus decreased $0.2 billion in July to $21.6 billion.

Breaking down the components, first exports:

Exports of goods and services decreased $0.6 billion, or 0.3 percent, in July to $194.4 billion. Exports of goods decreased $0.4 billion and exports of services decreased $0.1 billion.

The decrease in exports of goods mostly reflected decreases in consumer goods ($0.7 billion) and in automotive vehicles, parts, and engines ($0.6 billion). An increase in capital goods ($0.9 billion) partly offset the decreases.
The decrease in exports of services mostly reflected a decrease in travel (for all purposes including education) ($0.3 billion).

And imports:

Imports of goods and services decreased $0.4 billion, or 0.2 percent, in July to $238.1 billion. Imports of goods decreased $0.5 billion and imports of services increased less than $0.1 billion.

The decrease in imports of goods mostly reflected decreases in automotive vehicles, parts, and engines ($0.8 billion) and in industrial supplies and materials ($0.7 billion). An increase in capital goods ($1.3 billion) partly offset the decreases.
Imports of services were nearly unchanged, reflecting small and offsetting changes across all categories.

Broken down by geography, the July figures showed:

Surpluses with South and Central America ($3.5), Hong Kong ($2.8), Brazil ($0.8), Saudi Arabia ($0.8), and Singapore ($0.7).

Deficits with China ($31.8), European Union ($12.1), Japan ($5.5), Mexico ($5.4), Germany ($5.3), Italy ($2.4), India ($1.9), Taiwan ($1.9), South Korea ($1.8), France ($1.3), Canada ($0.9), United Kingdom ($0.2), and OPEC ($0.1).

The surplus with South and Central America increased $0.9 billion to $3.5 billion in July. Exports increased $1.0 billion to $12.9 billion and imports increased $0.1 billion to $9.4 billion.

The balance with Saudi Arabia shifted from a deficit of less than $0.1 billion to a surplus of $0.8 billion in July. Exports increased $0.4 billion to $1.9 billion and imports decreased $0.4 billion to $1.2 billion.