According to a recent report by the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, the goods and services deficit dropped by $1.5 billion. It’s now at $54.0 billion, and was at $55.5 billion the month before.
In July, exports increased by $1.2 billion and imports decreased by $0.4 billion. In other words, the U.S. is selling more goods and buying less compared to the previous month, which caused the drop in the deficit. The services surplus was relatively unchanged.
Of the exported goods, the amount of pharmaceutical preparations, capital goods, and automotive vehicles increased, while industrial supplies/materials decreased. Of the imported goods, computers decreased and industrial supplies/materials increased. The increase in pharmaceutical exports (by $1.2 billion) and the decrease in imported computers (by $1.4 billion) were the biggest contributors to the change in deficit.