Prior month $-75.1 billion revised to $75.0 billionGood trade balance $-96.56 billion versus $-96.84 billion preliminary and $-99.37 billion last monthServices surplus $24.2 billion
Details:
Exports -1.5% versus -0.5% last monthImports +0.6% versus -0.3% last monthCapital goods imports $80.18 billion versus $77.95 billion last monthTotal exports $265.94 billion versus $262.01 billion last monthTotal imports $339.05 billion versus $337.01 billion last month.US China June trade deficit $-22.80 billion versus a trade deficit of $-23.98 billion
A larger trade deficit means that the value of imports exceeds the value of exports. Since GDP is calculated as the sum of consumption, investment, government spending, and net exports (exports minus imports), a larger trade deficit (higher imports and/or lower exports) directly reduces the net exports component, thereby reducing GDP.
This article was written by Greg Michalowski at www.forexlive.com.
