U.S. Trade Deficit Posts Surprise Fall In July

Sept. 13, 2005
The trade deficit surprisingly contracted 2.6% in July to $57.9 billion despite a record-high oil bill as export growth picked up. The Commerce Department said that import growth went down in July while exports picked up slightly, offsetting a record ...

The trade deficit surprisingly contracted 2.6% in July to $57.9 billion despite a record-high oil bill as export growth picked up. The Commerce Department said that import growth went down in July while exports picked up slightly, offsetting a record $18.5 billion bill for petroleum imports on the back of sky-high oil prices. Analysts said the deficit could narrow further once the full impact of Hurricane Katrina is gauged in a couple of months, but that the longer-term trend remains higher.

Wall Street was expecting the trade deficit to widen to $59.8 billion in July. But it actually fell from a revised $59.5 billion in June.

Another item on the balance sheet that hit a new high was the U.S. deficit with China. It went up 0.3% over the month to $17.7 billion, accounting for nearly a third of the total deficit.

Americans' appetite for foreign consumer goods lessened, with medicine and capital goods imports notably going down. Exports of industrial supplies and materials, capital goods such as civilian aircraft, and autos all went up.

The latest Commerce Department report evaluated the trade performance before Katrina. Economists expect the hurricane will have a significant impact on the trade balance later this year, as some of the major hubs of trade along the Gulf of Mexico coast were knocked out of commission.

Copyright Agence France-Presse, 2005

Popular Sponsored Recommendations

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

Discover How an Eye Tracking Study Improves Training Procedures

Oct. 29, 2023
Did you know that your training processes can be streamlined by visualizing and analyzing key skills within your employee base? Find out how we use eye tracking to capture advanced...

Digitally Transforming Data and Processes With Product Lifecycle Management

Oct. 29, 2023
Manufacturers face increasing challenges in product development as they strive to consistently deliver improved results. Discover how industry leaders are improving time-to-market...

Smarter Savings for Manufacturers - Guide

Sept. 12, 2023
Enhance your service experiences and boost revenue while reducing costs. Learn how one platform can help your business be more agile and productive in today's market.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!