Washington, DC, United States (4E) – The merchandise trade deficit in the U.S. fell in July, a signal of stronger demand for American goods overseas that could help spur the country’s manufacturing sector in the coming months.
The trade gap narrowed to $40.5bn in July, down $300mn from the prior month, to its lowest level since January this year, according to data from the Commerce Department released Thursday.
The result indicates that global demand for U.S. made goods is growing, which include orders for automobiles and industrial supplies, easing concerns of weakness in Asia and Europe weighing on the world’s largest economy.
Thursday’s report also showed that exports inched up 0.9 percent while imports grew 0.7 percent. Economists polled by The Wall Street Journal had predicted the trade deficit to be at $42.5bn for July.
Analysts also indicate that the figures could support the view of continued economic growth in the third quarter, which combined with other indicators to show an improvement in the manufacturing sector.