US trade deficit contracts in June

Washington: The U.S. trade deficit narrowed in June, but the trend is unlikely to be sustained amid strong domestic demand that is being satiated ‌with ⁠imports.

The ⁠trade shortfall contracted 5.6% to $73.3 billion, the Commerce Department's Bureau of Economic Analysis and Census Bureau said on Tuesday. Economists polled by Reuters had forecast the deficit at $73.0 ⁠billion.

The government ‌reported last week ​that ​the trade deficit widened further ⁠in the second quarter, subtracting a ​full percentage point from gross ​domestic product.


The economy grew at a 1.5% annualized rate last quarter, though domestic demand, driven by consumers and business ‌ramping up spending on artificial intelligence infrastructure, increased at its ​fastest pace ​since ⁠the first quarter of 2023.

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Imports dropped 1.8% to $388.0 billion in June. Goods imports ​fell 2.5% to $309.0 billion. Exports slipped 0.9% to $314.7 billion. Goods exports declined 1.9% to $206.9 billion.