Trade deficit contraction may trim Q2 GDP drag but economists still expect a one-point subtraction from growth.
The US goods trade deficit narrowed 4.2% to $101.5 billion in June as imports fell $8.2 billion to $306.2 billion. Exports also declined to a five-month low, weighed by lower industrial supplies shipments including petroleum.
Economists had forecast a $100.0 billion deficit. The three-month average gap remains wider than the first-quarter average, suggesting persistent trade headwinds. Imports rose 16.6% year-on-year despite June’s drop.
Analysts project net trade will subtract roughly one percentage point from Q2 GDP growth, though the June improvement may soften the impact.