International US trade deficit shrank by nearly 12%

The international US trade deficit shrank by nearly 12 % in July thanks to rising exports. This is a signal of strengthening global demand for goods and services.

The trade deficit of the world's leading economy fell in July by 11.6% to 39.47 billion dollars from a deficit of 44.66 bln dollars in June, reflecting the large increases in exports and the decrease in imports. The average forecast of the financial markets were for a larger deficit amounting to about 41.1 bln dollars.

Imports fell 0.8% to 225.81 bln dollars, but at the same time, exports rose 1.9% to 186.33 bln dollars. This represents the largest increase in US exports for two and a half years and it is a fact despite the sharp appreciation of the dollar at the end of June and most of July in reaction to the surprising Brexit vote.