Trade Balance Widens to -US$27.0bn
Written by
The June trade balance widened to -US$27.0bn compared to -US$26.0bn the previous month, and a consensus forecast of -US$28.6bn. Exports rose +2.0% in the month to US$125.8bn, but were more than offset by an even bigger increase in imports at 2.3% to US$152.8bn. The primary driver behind June’s widening was higher energy related prices. The average price for oil imported into the US rose for the fourth straight month reaching US$59.17/barrel. The increment in US exports can be attributed to foreign demand for capital goods and industrial supplies. US food related exports also hit levels not seen since October 2008. Finally, this data, which was marginally better than anticipated in the BEA’s advanced GDP release, could have a marginally positive effect on the preliminary GDP report scheduled for release on August 27th.
Source: Bloomberg
Join the discussion