Source: Economics Group of Wells Fargo Bank, N.A.
Slower domestic demand has begun to weigh on import growth and give way to a reversal from a sharp widening to a gradual narrowing in the U.S. trade deficit. Export growth is also higher, advancing for the fifth consecutive month in June. The United States is supplying more commodities to Europe as the Russia-Ukraine war continues.
Signs of Normalization and Key Commodity Support to Europe
- The U.S. trade balance narrowed to a deficit of $79.6 billion in June, marking the smallest deficit in seven months (chart). The sharp narrowing was due to a $4.3 billion pop in exports amid a $1.0 billion pullback in imports.