August 07, 2018

The U.S. Bureau of Economic Analysis indicated that, “The U.S. monthly international trade deficit increased in June 2018. The deficit increased from $43.2 billion in May (revised) to $46.3 billion in June, as exports decreased and imports increased.”

The report mentioned that the previously published May deficit was $43.1 billion. In June, there was a $3.1 billion increase in the goods deficit to $68.8 billion. While, the service surplus decreased less than 0.1 billion in June to $22.5 billion.

Exports

There was a decrease in the exports of goods and services, in June, of $1.5 billion or 0.7 percent to $213.8 billion. In relation to this decrease, there was a $1.7 billion decrease in exports of goods reflecting decreases in consumer goods ($1.4 billion), in capital goods ($0.9 billion) and in automotive vehicles, parts, and engines ($0.7 billion). An increase in industrial supplies and materials ($2.0 billion) partly offset the decreases.

Also, an increase of $0.2 billion in exports of services contributed to this decrease, which reflected in an increase in financial services ($0.1 billion).

Imports

In June, imports of goods and services increased $1.6 billion or 0.6 percent to $260.2 billion. An increase of $1.4 billion was reflected in imports of goods and imports of services by $0.2 billion. The increase in imports of goods mostly reflected increases in consumer goods ($2.0 billion) and in industrial supplies and materials ($0.9 billion) partly offset by a decrease in capital goods ($1.5 billion).

The increase in imports of services mostly reflected an increase in charges for the use of intellectual property ($0.3 billion), including payments for the rights to broadcast the portion of the 2018 soccer World Cup that occurred in June.

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