The US goods trade deficit contracted in June as imports declined, according to preliminary data released by the US Census Bureau. The narrowing gap still leaves trade positioned to subtract from second-quarter gross domestic product growth.
June Goods Trade Gap and Import Declines
The international trade deficit in goods shrank in June, according to the Census Bureau report. Imports of goods dropped during the month.
Impact on Second-Quarter Gross Domestic Product
Inventory data released alongside the trade figures showed wholesale inventories climbing in June, according to Census Bureau figures, providing a partial offset as businesses manage stock levels.
Historical Context and Prior Quarters
The Bureau of Economic Analysis will incorporate these final June trade and inventory numbers into its upcoming second-quarter gross domestic product estimate.
Frequently Asked Questions
What caused the US goods trade deficit to narrow in June?
How does the goods trade deficit affect GDP growth?
What happened to wholesale inventories in the same report?
Wholesale inventories increased in June, according to the Census Bureau data.