U.S. trade deficit in goods falls 6% in June

The U.S. trade deficit in goods showed a 6.1% decline in June as exports grew faster than imports, but the level of trade is still well below year-ago levels because of the massive strain caused by the coronavirus.

The advanced trade deficit in goods dropped to $70.6 billion in June from $75.3 in the prior month, the U.S. Census Bureau said Wednesday.

The decline was larger than expected. Economists polled by MarketWatch had forecast the gap to shrink just slightly to $74.9 billion.

A smaller deficit adds to gross domestic product, the official scorecard for the U.S. economy. The government is expected to report on Thursday that GDP fell a record 35% in the second quarter.

An advanced look at wholesale inventories, meanwhile, showed a 2% decrease increase in June. And an early look at retail inventories reflected a 2.6% decline.

These declines are likely to offset any benefit to GDP from a lower trade deficit.

U.S. exports of goods climbed almost 14% to $102.6 billion in June. Higher auto exports accounted for the bulk of the increase.

Most exports increased, suggesting a solid rebound for American manufacturers. The only category to show a decline was food and feeds.

Imports rose a smaller 4.8%. More foreign-produced autos as well as consumer goods such as cell phones and electronics made their way through U.S. ports, but a large decline in industrial imports partly offset those increases. The U.S. probably imported less foreign oil because Americans are driving and flying less.

The advanced report only includes goods. Services such as travel and tourism aren’t included until the full report that gets released next week.