American manufacturers sold more cars, airplanes and industrial machinery in foreign markets in July, sending exports to an all-time high and pushing the trade deficit down to its lowest level in three months, The Associated Press reports.
The trade deficit narrowed to $44.8 billion in July, down 13.1 percent from June, the Commerce Department reported Thursday.
The improvement reflected a 3.6 percent rise in exports to a record level of $178 billion, reflecting strong sales of a variety of manufactured goods. Imports dipped 0.2 percent to $126.9 billion as the bill for imported oil dropped 6 percent to $35.5 billion as crude oil prices fell.
The big jump in exports should provide critically needed support for U.S. growth at a time when the economy has been in danger of toppling into a recession.
The overall economy grew at a meager 0.7 percent in the first six months of this year, the slowest growth since the recession ended two years ago. Economists are hoping for a modest rebound in growth to around 2 percent in the second half of this year. Some of that strength is expected to come from stronger export sales.
A narrowing trade deficit adds to economic growth because it means more products are being produced in the United States by U.S. workers and less money is flowing into the hands of foreign producers to buy imports.
The U.S. trade deficit through July was running at an annual rate of $565.3 billion, 13.1 percent higher than last year’s imbalance of $500 billion.
