US trade deficit drops to $41.9 billion in July

Source: AP

By MARTIN CRUTSINGER

WASHINGTON (AP) — The U.S. trade deficit fell in July to the lowest level in five months as exports posted a small gain while imports declined, reflecting a big drop in shipments of consumer goods such as cell phones.

The deficit narrowed to $41.9 billion in July, a 7.4 percent decline from a June imbalance of $45.2 billion, the Commerce Department reported Thursday. Exports were up a small 0.4 percent to $188.5 billion, helped by stronger sales of U.S.-made autos and machinery, while imports declined 1.1 percent to $230.4 billion.

So far this year, the deficit is running 3.6 percent above last year's level, reflecting weaker export sales. The concern is that U.S. growth will be hurt by further declines in exports, reflecting a stronger dollar and overseas weakness in nations such as China.

A sharp slowdown in China has roiled financial markets in recent weeks as investors have grown concerned that weakness in the world's second largest economy could have a more adverse impact on global growth.

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FILE - In this Feb. 20, 2015 file photo, the HS Mozart cargo ship, right, operated by the German shipping company Hansa Shipping, sits anchored in Commencement Bay near the Port of Tacoma, Wash. The Commerce Department reports on the U.S. trade gap for July on Thursday, Sept. 3, 2015. (AP Photo/Ted S. Warren, File)

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