The nominal trade deficit narrowed for the third consecutive month in July to $40.5 billion as exports grew faster than imports during the month. The increase in exports in July was driven by automotive products and industrial supplies and materials. Automotive products also led import gains in July. Note that the majority of exported automotive products were finished vehicles (passenger cars, trucks, and buses), and parts and accessories accounted for the largest share of U.S. automotive imports.
On a year-over-year basis, growth of both exports and imports remained lackluster in July, continuing on a low trajectory compared with recent history (excluding drops in international trade during past recessions).
