The U.S. goods trade deficit narrowed by a wider-than-expected margin in June, as imports fell sharply—particularly in consumer goods—potentially lifting estimates for second-quarter economic growth.
The Commerce Department reported Tuesday that the trade gap in goods narrowed to $86.0 billion, down from $96.4 billion in May. Economists had expected a deficit of around $99 billion.
While exports dipped 0.6 percent to $178.2 billion, imports fell 4.2 percent to $264.2 billion, driven by a steep 12.4 percent drop in consumer goods imports. Imports of industrial supplies were down 5.5 percent, and automotive imports declined 2.0 percent.
The sharp pullback in consumer goods—a category that includes items such as apparel, electronics, and household products—was the largest monthly decline in more than a year. The data suggest that firms may have accelerated purchases earlier in the year to get ahead of anticipated tariffs under the Trump administration’s trade strategy, leading to a drop in June volumes.
The narrowing of the trade deficit is expected to support second-quarter gross domestic product, as a smaller trade gap subtracts less from overall output. A second estimate of Q2 GDP is due in late August.
Compared with a year earlier, the goods trade deficit declined by $12.8 billion, or about 13 percent. Exports rose 3.6 percent over the year, while imports fell 2.5 percent.
Capital goods exports rose 4.7 percent in June, and consumer goods exports increased 1.5 percent. On the inventory side, retail inventories rose 0.3 percent and were up 2.5 percent from a year earlier, while wholesale inventories increased 0.2 percent.
The advance report does not include services or inflation-adjusted figures. The full trade report for June is scheduled for release next week.
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