U.S. Trade Deficit

We're currently experiencing the lowest trade deficit we've had in 18 months; due to both an increase in exports and a decrease in imports. Our trade deficit was $42.9 billion, down from $48 billion a month earlier. U.S. exports have been strong in most places except for in Europe, which is still in the middle of their debt crisis.

From the Wall Street Journal:

In June, the U.S. notched increases in exports of a variety of goods including pharmaceuticals, cars and industrial engines. Exports increased $1.7 billion to $185 billion, the highest monthly tally ever. Imports declined $3.5 billion to $227.9 billion, driven largely by a drop in oil prices that reduced the value of petroleum imports. Total U.S. exports are up 6% in the first six months of 2012 from the same period a year ago. In the first half of 2011, they were up 16% from the year-earlier period... 

For the U.S., a narrower trade gap would give a considerable lift to the economy at a time when growth has started to sputter, but many analysts were wary of ratcheting up expectations based on the June data. In coming months, a rising dollar, weaker demand in China and the euro zone's woes all are likely to weigh on U.S. trade. Other gauges of exports, such as an index tracked by the Institute for Supply Management, show demand already is slipping.  

 

In short, while this decreased trade deficit gave a slight push to our economy, it is unsustainable. Global demand is weakening.