The Advance Report on International Trade shows the international trade deficit was $74.2 billion in June, down $0.9 billion from $75.0 billion in May.

International Trade in Goods

Exports fell a very sharp 2.7 percent in June with imports down 2.2 percent. These are among the weakest results in 2-1/2 years and outside of isolated gains in May, extend six months of deterioration consistent with slowing and/or contraction in net global trade. The more severe contraction in exports (totaling $136.3 billion) than imports ($210.5 billion) makes for a deeper-than-expected $74.2 billion goods gap in June which just exceeds Econoday's consensus range and will have forecasters marking down their net export estimates for tomorrow's second-quarter GDP report.

Capital goods are the US's strongest exports and these fell 2.6 percent in the month with consumer goods down 10.9 percent and autos down 4.0 percent. Exports of foods, however, rose 0.5 percent though this year-on-year rate is in the deepest negative ground of any export category, at minus 5.5 percent.