Better US trade deficit data in July suggest trade might help with growth in quarter
Washington — The US trade deficit increased less than expected in July as both exports and imports fell, suggesting that trade could contribute to economic growth in the third quarter. The commerce department said on Wednesday the trade gap rose 0.3% to $43.7bn. June’s trade deficit was revised down slightly to $43.5bn from the previously reported $43.6bn. Economists polled by Reuters had forecast the trade shortfall widening to $44.6bn in July. When adjusted for inflation, the trade deficit increased to $61.6bn from $60.8bn in June. The so-called real goods deficit in July was below the second-quarter average of $62.4bn. While that suggests trade could add to GDP in the third quarter, economists at Wrightson ICAP cautioned that Hurricane Harvey could significantly affect commodity prices and trade volumes, and push up the trade deficit in September. The politically sensitive US-China trade deficit increased to an 11-month high in July. That ongoing deficit has grabbed the attention...
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