Stock photo: U.S. imports arrive in-country

The U.S. trade deficit shrank in June as imports slid to the lowest level since 2021, reflecting more moderate consumer demand for merchandise.

The United States' shortfall in goods and services trade narrowed by $2.8 billion, to a three-month low of $65.5 billion, Commerce Department data showed Tuesday. The figures aren't adjusted for inflation. The median estimate in a Bloomberg survey of economists called for a $65 billion deficit.

The value of total imports declined 1 percent, to the lowest level since November 2021, reflecting decreases in the value of capital goods and industrial supplies. Exports eased 0.1 percent.

Imports have largely been decreasing since they peaked early last year, as shifts in consumer spending translate into lower demand for foreign-made products. Americans have steered more of their purchases toward services and away from goods, and some are also growing more discerning about their spending. That's encouraged retailers to focus on bringing inventories more in line with sales.

On an inflation-adjusted basis, the merchandise trade deficit shrank to $86.2 billion in June.

Digging Deeper

  • Travel exports—or spending by visitors to the United States—eased to $14.4 billion.
  • Travel imports—a measure of Americans traveling abroad—decreased to $11.7 billion, the lowest this year.
  • The U.S. merchandise-trade deficit with China narrowed $2.1 billion, the most since November, to $22.8 billion.

—With assistance from Chris Middleton & Hannah Pedone.

 

 

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