According to the latest report from the Commerce Department, U.S. trade with foreign countries experienced a boost in July, thanks to robust consumer spending driving demand for imported goods.
In July, imports of goods and services surged by 1.7%, reaching $316.7 billion compared to the previous month. This indicates that American consumers and companies were increasingly purchasing more goods from abroad. Notably, consumer goods imports increased by $2.6 billion, with significant contributions from cellphone and household goods purchases. Additionally, companies raised their imports of capital goods, including semiconductors, by $2.2 billion.
July also witnessed a positive growth in exports of goods and services, rising by 1.6% to $251.7 billion. This increase can be attributed to a surge in car, truck, and gold exports. Furthermore, exports of crude oil rose by $500 million, while consumer goods exports experienced a slight increase.
The trade deficit in goods and services for July stood at $65.0 billion, marking a $1.3 billion, or 2%, rise from the revised figure of $63.7 billion in June. However, it is worth noting that when comparing this year’s data through July to the same period last year, the goods and services deficit decreased significantly by 21.4%.
Widening Deficit with China
In July, the trade deficit with China widened to $24 billion, as the growth in imports surpassed the growth in U.S. exports to the country.