U.S. Exports Reach Record In July

U.S. exports hit a record high in July, pushing the country’s trade deficit down to its lowest level in three months. The Commerce Department said growth led by strong overseas sales of manufactured goods, U.S. exports rose 3.8% to $178 billion.

At the same time, imports fell 0.2% to $222.8 billion, helped by a fall in the price of oil reducing the cost of the U.S.’s crude imports. The trade gap fell 13.1% to $44.8 billion.

The rise in exports was led by record shipments to countries in Central and South America. However, the U.S.’s trade gap with China widened 1.1% to $27 billion, the largest imbalance since September 2010.

Gary Thayer, economist at Wells Fargo Advisors, said that while the July export figure was strong, how August performed was now key, as it was last month that the global economy started to contract. ◆