The U.S. trade deficit shrank sharply
in June to the lowest levels since 2009. This reverses last month's spike,
suggesting an upward revision to second-quarter growth.
The Commerce Department reported the
trade gap fell 22.4% to $34.2 billion, the smallest amount since October 2009.
The percentage decline was the largest since February 2009. In a poll by
Reuters, economists had expected the trade deficit to narrow only to $43.5 billion
in June.
The trade deficit in May was also
revised down to $44.1 billion from $45.0 billion. The smaller “real trade
deficit” in June suggests the government is in line to raise its initial
second-quarter gross domestic product growth estimate.
Trade trimmed 0.8 percentage
point from second-quarter GDP growth with the economy growing at an annual rate
of 1.7 percent, up from the first-quarter's 1.1 percent pace.
The three-month moving average of
the trade deficit, which irons out month-to-to month volatility, fell to $39.5
billion in the three months to June from $40.5 billion in the prior period.
In June, imports of goods and
services fell 2.5 percent to $225.4 billion. That reflected hefty declines in
petroleum imports and industrial supplies and materials, which tumbled to
levels last seen in November 2010.