Trade Balance

The U.S trade deficit surged unexpectedly by 18.8% in June, growing to $49.9 billion from $42.0 billion in May.  Economists had expected that the gap would increase slightly to $42.1 billion.  Imports climbed 3.0%, led by aircraft and pharmaceuticals, while exports decreased by 1.3%.  Net of price changes, the trade deficit widened to $54.1 billion, suggesting that net exports may subtract from Q2 GDP.  The trade gap with China rose to $26.2 billion, the highest level since October 2008, from $22.3 billion in May.

Summary:  The trade deficit rose to the highest level since October 2008 as imports rose and exports fell.  This figure prompted some economists to lower their forecasts for Q2 GDP by as much as 0.5%.

» More Economic Indicators