US exports set another record in June, narrowing the US trade gap for the third straight month, according to official data Thursday.
Exports of goods and services rose $4.3 billion to $260.8 billion last month, beating the previous record set in May, while imports fell $1 billion, the Commerce Department reported.
That has reduced the US trade deficit by 6.2 percent to $79.6 billion, the data shows.
US goods exports abroad were boosted by gold, natural gas, airplanes, and food and feed.
Petroleum exports were the highest on record at US$29.1 billion, but petroleum imports also hit an all-time high at US$27.8 billion, the report said.
Exports of services, including travel and transport, rose slightly and hit a new high.
Meanwhile, imports of cars and parts fell sharply.
The US-China trade gap rebounded after narrowing in May, rising $4.7 billion to a new record $36.9 billion on a surge in imports after the previous month’s slump , says the report. That was the highest value in almost three years.
Businesses have rushed to replenish depleted inventories in recent months amid strong demand from American buyers, but skyrocketing inflation has raised concerns consumers will pull back, leading businesses to become more cautious.
The Federal Reserve is aggressively raising interest rates to dampen demand and cool inflation, and many families are having to spend a larger portion of their income on basic necessities.
Oxford Economics’ Mahir Rasheed said that despite headwinds in the global economy, “exports have remained more resilient than expected”.
However, he cautioned that as the Fed moves to cool demand and rein in inflation, “we expect the ongoing slowdown in the economy to further disrupt trade flows in the second half of 2022.”
In the first half of 2022, the overall trade deficit widened 33.4 percent from the same period in 2021 as rapid growth in imports outstripped exports, the report said.
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