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US trade deficit falls as imports drop

Published on Aug 7, 2014 1:02 AM
Shoppers visit stores along a section of Michigan Avenue known as the Magnificent Mile on July 29, 2014 in Chicago, Illinois. The US trade deficit shrank in June primarily on lower imports. -- PHOTO: AFP

NEW YORK (AFP) - The US trade deficit shrank in June primarily on lower imports, according to official data out Wednesday that some analysts said raises questions about American consumer demand.

The nation's trade deficit in goods and services fell in June to US$41.5 billion (S$51.8 billion) from a revised US$44.7 billion in May, the Commerce Department said. It was the trade deficit's second monthly decline in a row.

June imports of goods and services fell US$2.9 billion, or about 1.2 per cent, from their May level of US$240.3 billion, while June exports edged US$300 million higher to a new record of US$195.9 billion, a gain of 0.2 per cent.

The decline in US imports came mainly in consumer goods, automotive parts, industrial supplies and materials, the report said. Petroleum imports continued to decline as the US produces more oil and gas at home.

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