The nominal trade deficit narrowed in July to $39.5 billion from $44.7 billion in June as exports increased and imports fell. The increase in exports was driven by a sizeable gain in exports of soybeans, and the drop in imports was mostly a result of large decreases in imports of pharmaceutical drugs and cell phones. On a year-over-year basis, both exports and imports continued to fall in July but at a slower pace.
Adjusted for price changes, growth in real merchandise exports turned positive on a year-over-year basis. Annual growth of real nonpetroleum merchandise imports was also slightly positive.
