ECON: Trade Deficit Lowest in 3.5 Years
- June Trade Gap $34.22 bln vs $43.5 bln consensus
- Exports +2.2, Imports -2.5 percent
- Goods deficit $53.16 bln
- Services Surplus record high $18.94 bln
- Overall deficit smallest since 10/2009
- Exports highest on record
Market Reaction: Sounds important, but the message from tradeflows after the data is says otherwise. This report doesn't readily translate into a commentary on the Fed's tapering schedule. Bond markets seem confused by this. Treasuries and MBS are within a tick of flat on the day.
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce,
announced today that total June exports of $191.2 billion and imports of $225.4 billion resulted
in a goods and services deficit of $34.2 billion, down from $44.1 billion in May, revised. June
exports were $4.1 billion more than May exports of $187.1 billion. June imports were $5.8 billion
less than May imports of $231.2 billion.
In June, the goods deficit decreased $9.7 billion from May to $53.2 billion, and the services surplus
increased $0.2 billion from May to $18.9 billion. Exports of goods increased $4.0 billion to $134.3
billion, and imports of goods decreased $5.7 billion to $187.4 billion. Exports of services increased
$0.1 billion to $56.9 billion, and imports of services were virtually unchanged at $38.0 billion.
The goods and services deficit decreased $8.2 billion from June 2012 to June 2013. Exports were
up $6.0 billion, or 3.2 percent, and imports were down $2.3 billion, or 1.0 percent.