July Trade Deficit Comes In Less Than Expected As Global Trade Slows Down

Tyler Durden's picture

America's July trade deficit came in slightly better than expected, printing at $42 billion, compared to expectations of $44.4 billion, on exports of $183.3 billion and imports of $225.3 billion, which was to be expected in light of the ongoing drop in Chinese net trade surplus. After all global trade is a zero sum game. The better than expected number was an increase from the revised July deficit of -$41.9 billion, revised lower from $42.9 billion in June. And while GDP beancounter calculations will generate slightly higher Q3 GDP forecasts as a result of the number and revision, the reason for the "improvement" is an ongoing contraction in global trade, which is anything but favorable for the world's economies for which any diversion from a status quo M.O. means longer-term pain.

From the report:

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total July exports of $183.3 billion and imports of $225.3 billion resulted in a goods and services deficit of $42.0 billion, up from $41.9 billion in June, revised. July exports were $1.9 billion less than June exports of $185.2 billion. July imports were $1.8 billion less than June imports of $227.1 billion.


In July, the goods deficit decreased $0.2 billion from June to $57.3 billion, and the services surplus decreased $0.3 billion from June to $15.3 billion.  Exports of goods decreased $1.9 billion to $130.8 billion, and imports of goods decreased $2.1 billion to $188.1 billion. Exports of services were virtually unchanged at $52.5 billion, and imports of services increased $0.3 billion to $37.2 billion.


The goods and services deficit decreased $3.6 billion from July 2011 to July 2012. Exports were up $4.9 billion, or 2.8 percent, and imports were up $1.4 billion, or 0.6 percent.

More here.

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GetZeeGold's picture



Ummmm.....I actually sorta expected it.


Ar-Pharazôn's picture

someone else did it for you ;)

LawsofPhysics's picture

Know your history.  When goods and services stop crossing borders, troops will.  Given that we are at the limits of our tchnology and now have over 7 billion "underfunded" liabilities walking around, the fireworks should be impressive.   Hedge accordingly.

Ar-Pharazôn's picture

"Given that we are at the limits of our tchnology"


i dont really get why do you say that...

LongSoupLine's picture



No worries, Cramer is screaming what stocks to pick.  He will navigate me through these stormy seas.  Well, would love to chat more, but I have to 2nd mortgage the house and sell a child to go all in Coach and Tiffany.

Sudden Debt's picture

maybe people are figuring out that it's cheaper to play a free game on their iPad than to buy other crappy toxic plastic toys...


Jason T's picture

Foreigners can keep buying our treasuryes.. $5 trillion and counting.. and our assets like utility companies.. NYSEG owned by Spanish Iberdrola for example. 

What a disgrace.

Sudden Debt's picture




Colonel Klink's picture

Uh you can have it!  I'll take a microbrew, thank you very much!

Bud, Amurkan piss water!

dwdollar's picture

Good riddance. Foreigners can have all of the macro legacy brewers.

Dr. Engali's picture

Good you can have the piss water. I will stick to New Castle, Guiness, and Bass.

LawsofPhysics's picture

"Foreigners can keep buying our treasuryes.. "

Last time I looked The Federal Reserve was buying over 70% - FAIL.

LawsofPhysics's picture

Right, now how much of that belongs to European central banks again?  This is just another arm of the Fed-FAIL  look who is showing up at auctions.  Tells you all you need to know.

Dareconomics's picture

The Eurocrisis will continue to be a drag on our exports and will dent profits more than the analysts are forecasting for the 3rd and 4th quarters. Don't worry 'cause Uncle Ben has got our backs.



Colonel Klink's picture

And the HITS just keep on comin!

Shizzmoney's picture

Don't worry, guys, the new iPhone5 will save GDP!  AAPL will save the trade deficit day!

Foxconn has acknowledged using student “interns” on manufacturing lines, but says they are free to leave at any time. But two worker advocacy groups said Monday that they had spoken with students who said they had been forced by their teachers to assemble iPhones at a Foxconn factory in Zhengzhou, in north-central China.

Worker advocates say Foxconn is under intense pressure at critical moments — like leading up to the release of a new product, like the iPhone 5 — to fill huge orders quickly.


For once in the entire time in human history, maybe the Chinese worker wishes his skin was black.  Maybe, then, the world would care about his enslavement.

Colonel Klink's picture

It's funny because I just read somewhere that they expect the iPhony to add like .5% to our GDP.

About wanted to puke.

Shizzmoney's picture

It's such a sham b/c we aren't actually MAKING the iPhone.....the Chinese slaves are.  All AAPL did was construct the framework, make the documentation, and shuttle inventory from country-to-country.

Corporations, especially our biggest ones, are just huge swaths of middle men now. 

CoolBeans's picture


Proof that they didn't build that.

Debeachesand Jerseyshores's picture

Getting up extra early to be at the Apple Store tomorrow,got have my latest iPhony.

Shizzmoney's picture

Even if the iPhone 5 raised the annualized Q4 GDP growth rate by 0.5%, it still only raises annual GDP by 0.03%.