by Calculated Risk on 9/04/2014 12:25:00 PM

Earlier the Department of Commerce reported:

[T]otal July exports of $198.0 billion and imports of $238.6 billion resulted in a goods and services deficit of $40.5 billion, down from $40.8 billion in June, revised. July exports were $1.8 billion more than June exports of $196.2 billion. July imports were $1.6 billion more than June imports of $237.0 billion.

The trade deficit was smaller than the consensus forecast of $42.7 billion and the deficit was revised down for Q1 and Q2.

The first graph shows the monthly U.S. exports and imports in dollars through July 2014.

Click on graph for larger image.

Imports and exports increased in July.  

Exports are 19% above the pre-recession peak and up 4% compared to July 2013; imports are about 3% above the pre-recession peak, and up about 4% compared to July 2013. 

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

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 imports averaged $97.81 in July, up from $96.41 in June, and down up $97.07 in July 2013.  The petroleum deficit has generally been declining and is the major reason the overall deficit has declined since early 2012.

The trade deficit with China increased to $30.9 billion in July, from $30.1 billion in July 2013.

The trade deficit was revised down (exports up, imports down) for the previous six months.