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.Read More: US sees Hormuz reopening deal with Iran by Wednesday: BessentImports 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.
US trade deficit contracts in June
The United States trade deficit saw a decrease in June. This contraction occurred as imports dropped significantly during the month. However, this trend is not expected to continue long-term. Strong domestic demand continues to be met by imported goods. The economy experienced robust growth driven by consumer and business spending.
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