SMALLER TRADE GAP: The U.S. trade deficit fell to its lowest level in 18 months in June, pushed down by a steep drop in oil imports and a rise in exports. The trade gap narrowed to $42.9 billion in June from $48 billion in May, the Commerce Department said Thursday. That brought the trade deficit in oil to its lowest level since November 2010. THE DETAILS: Exports rose 0.9 percent to a record high of $185 billion as overseas sales of autos, pharmaceuticals, and industrial machinery increased. Imports fell 1.5 percent to $227.9 billion, the lowest in four months as the average price of imported oil fell. Imports of computer equipment and TVs also declined. WHAT IT MEANS: A narrower trade gap acts as less of a drag on growth because it means the United States is spending less on foreign-made products and is taking in more from sales of U.S.-made goods.
News Summary: Trade deficit falls to 18-month low
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In this Friday, July 13, 2012, photo, a container ship from China is offloaded at Massport's Conley Terminal in the port of Boston. The U.S. trade deficit fell to its lowest level in 18 months in June, pushed down by a steep drop in oil imports and a small rise in exports. the Commerce Department said Thursday, Aug. 9, 2012 that the trade gap narrowed to $42.9 billion in June, down from $48 billion in May. (AP Photo/Stephan Savoia)
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FILE - In this Nov. 8, 2011 photo, shipping containers are moved at Massport's Conley Terminal in Boston. The U.S. trade deficit fell to its lowest level in 18 months in June, pushed down by a steep drop in oil imports and a small rise in exports. the Commerce Department said Thursday, Aug. 9, 2012 that the trade gap narrowed to $42.9 billion in June, down from $48 billion in May. (AP Photo/Charles Krupa, File)
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