U.S. trade deficit shrinks in July as imports fall



Reuters Staff | Reuters

The U.S. trade deficit narrowed more than expected in July as imports declined likely because of shortages and a shift in domestic spending from goods to services.

The Commerce Department said on Thursday that the trade gap fell 4.3% to $70.1 billion. Data for June was revised to show the deficit at $73.2 billion instead of $75.7 billion as previously reported.

Economists polled by Reuters had forecast a $71.0 billion deficit. Imports slipped 0.2% to $282.9 billion. Goods imports dropped 1.2% to $236.3 billion, likely restrained supply constraints. Demand is also rotating to services from goods amid vaccinations against COVID-19.

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