The dollar value of U.S. exports rose to $153.3 billion in July, a monthly increase of 1.8 percent which more than erased the prior month’s decline of 1.3 percent. Imports dropped by 2.1 percent to $196.1 billion. The surge in exports combined with the smaller import volume narrowed the July trade deficit to $42.8 billion, a reduction of nearly $7 billion from June. The decline in the trade deficit is a positive early indicator for third-quarter GDP because exports add to GDP while imports are subtracted from the calculation -- although the decline in imports is likely to be a one-month aberration. Overseas demand for U.S. exports should help propel the manufacturing sector even as domestic demand remains tepid. Overall the report is a positive sign for the U.S. industrial market, suggesting that the third quarter should bring a second consecutive decline in the vacancy rate.
Source: U.S. Census Bureau, Grubb & Ellis
Source: U.S. Census Bureau, Grubb & Ellis