US trade gap narrows as autos spur record exports increase

The deficit in U.S. trade of goods and services narrowed in June for the first time since February as exports jumped, though shipments remained well below pre-pandemic levels.

Exports increased from the prior month by 9.4%, the most in records back to 1992 to $158.3 billion, according to Commerce Department data released Wednesday. Imports climbed 4.7%, the most since March 2015, to $208.9 billion.

Both increases reflected a pick-up in shipments of autos and parts after factories restarted production.

The overall gap in goods and services trade narrowed to $50.7 billion, compared to the median estimate of $50.2 billion by a Bloomberg survey of economists, from a revised $54.8 billion in May.

The coronavirus pandemic has wreaked havoc on trade globally and in the U.S., the world’s largest economy has pulled back sharply since the outbreak began amid a surge in unemployment and a slowdown in international travel. At the same time, American exporters may stand to benefit from a recent decline in the value of the dollar, which makes U.S. goods more competitive in overseas markets.

Combined, the value of U.S. exports and imports rose to $367.2 billion, after dropping to the lowest level since 2010 in May.

The data show exports of automotive vehicles, parts and engines more than doubled to $8.3 billion, but remained at levels last seen in 2009.

The goods deficit with China narrowed to $26.7 billion as imports posted a larger drop than exports.