by Calculated Risk on 9/08/2011 09:03:00 AM

The Department of Commerce reports:

[T]otal July exports of $178.0 billion and imports of $222.8 billion resulted in a goods and services deficit of $44.8 billion, down from $51.6 billion in June, revised. July exports were $6.2 billion more than June exports of $171.8 billion. July imports were $0.5 billion less than June imports of $223.4 billion.

The trade deficit was well below the consensus forecast of $51 billion.

The first graph shows the monthly U.S. exports and imports in dollars through July 2011.

Click on graph for larger image.

Exports increased and imports decreased in July (seasonally adjusted). Exports are well above the pre-recession peak and up 15% compared to July 2010; imports are up about 13% compared to July 2010.

The second graph shows the U.S. trade deficit, with and without petroleum, through July.

The blue line is the total deficit, and the black line is the petroleum deficit, and the red line is the trade deficit ex-petroleum products.

Oil averaged $104.27 per barrel in July, down slightly from $106.00 per barrel in June. The trade deficit with China increased slightly to $26.95 billion; trade with China remains a significant issue.

The decline in the trade deficit was due to an increase in exports. Also the trade deficit for the first six months of the year was revised down - especially in Q2.