By: John Sperry
In July, the Nation’s international trade deficit increased to $39.1 billion from $34.5 billion in June (revised), as imports increased and exports declined. Imports increased $3.5 billion to $228.6 billion primarily due to increases in industrial supplies and materials ($2.0 billion) and automotive vehicles, parts, and engines, ($0.8 billion) which set a record high ($26.5 billion). Exports decreased $1.1 billion to $189.4 billion, driven by decreases in capital goods ($1.6 billion) and consumer goods ($1.4 billion). An increase in industrial supplies and materials ($1.7 billion) which included highest on record exports of petroleum products ($12.5 billion), partially offset the decline in exports. July also set record exports ($56.7 billion) and imports ($37.3 billion) of services.
Croatia Joins the European Union
Effective with this release, the European Union was expanded to reflect the entry of Croatia on July 1, 2013. Though we have recorded a year-to-date trade deficit of $66.3 million with Croatia, July’s monthly trade balance witnessed a $6.3 million trade surplus. Despite the addition of Croatia’s trade surplus, the July deficit with the European Union ($13.9 billion) was the highest on record due to record imports ($35.1 billion). The graph below displays the European Union exports, imports, and trade balance over the last twenty-four months, it reflects the countries in the grouping as they were at the time of reporting.