US June advance goods trade deficit narrows to $101.5 billion
Imports and exports both fell in June as the goods gap narrowed from May but stayed above $100 billion, leaving trade a likely drag on second-quarter GDP even as AI-linked equipment spending remained strong.
The U.S. advance goods trade deficit narrowed 4.2% in June to $101.5 billion as imports fell faster than exports, though the gap remained above both $100 billion and economists’ $100.0 billion forecast. Goods imports dropped by $8.2 billion to $306.2 billion, their first decline since January, while exports fell by $3.8 billion to $204.7 billion as industrial supplies shipments weakened. The June figures suggest trade remained a drag on second-quarter growth for a second straight quarter. Imports of capital goods, including computers and accessories, semiconductors and communications equipment, fell for the first time since September after months of gains tied to heavy artificial intelligence investment, though they were still up 37.4% from a year earlier. Business spending on equipment linked to AI investment was nevertheless likely a major support for growth in the quarter. Exports of industrial supplies, a category that includes crude oil, petroleum products and nonmonetary gold, fell 4.4% in June. Exports of consumer goods and autos rebounded, while imports of consumer goods also declined. The government is due to release its advance estimate of second-quarter GDP on July 30, and a Reuters survey of economists forecast annualized growth of 2.1%, matching the first-quarter pace.
- goods trade deficit: The amount by which a country's goods imports exceed its goods exports.
- capital goods: Products such as machinery, computers and equipment that businesses use to produce goods and services.
- industrial supplies: A trade category covering production inputs such as crude oil, petroleum products and other materials.