Trade Deficit Deeper Than Expected In June

The nation's trade deficit proved a little deeper than expected in June, at $46.3 billion vs Econoday's consensus for $45.6 billion.

After a run of strength going back to February, exports posted a 0.7 percent decline to $213.8 billion in the month with a rise in service exports offset by a drop in goods exports where capital goods, vehicles and especially consumer goods posted declines.

Imports, in special focus of course given the tariff situation, rose 0.6 percent to a monthly $260.2 billion with consumer goods, the sore spot in the nation's deficit, rising a sharp $2.0 billion to $53.4 billion. Oil imports were also up, rising $1.2 billion to $14.1 billion.

Country data show a deepening deficit with China, at $33.5 billion in June with the year-to-date deficit 8.6 percent wider at $185.7 billion. Other year-to-date deficits include an 11 percent deepening with Europe at $77.6 billion, a 5.5 percent deepening with Mexico at $38.0 billion, and a 23.4 percent improvement with Canada at $8.1 billion.

Though deeper than expected in June, the nation's trade deficit has been improving though the outlook, given tit for tats on tariffs, is uncertain.