US trade deficit narrows in June

The Department of Commerce reported the U.S. goods and services trade deficit narrowed by 2.3 percent m-o-m to $46.64 billion in June, while economists expected a gap of $45 billion. That was the smallest trade deficit since October 2016.

According to the report, the June decrease in the goods and services deficit reflected a decrease in the goods deficit of $2.14 billion (or 3.2 percent) to $65.25 billion and an increase in the services surplus of $0.61 billion (or 2.9 percent) to $21.60 billion.

Overall, exports rose $2.35 billion (or 1.2 percent) to $194.374 billion in June, the highest level since December 2014, while imports edged down $0.40 billion (or 0.2 percent) to $238.01 billion.

Year-to-date, the goods and services deficit rose $26.74 billion (or 10.7 percent) to $276.60 billion from the same period in 2016. Exports grew $64.92 billion or 6.0 percent. Imports surged $91.66 billion or 6.9 percent.