U.S. trade deficit falls as exports surge

The U.S. trade deficit narrowed more than forecast in July, reaching a three-month low as exports climbed to a record and crude oil imports eased.

The gap shrank 13.1 percent, the most since February 2009, to $44.8 billion from a revised $51.6 billion shortfall in June that was smaller than initially reported, Commerce Department figures showed today in Washington. The deficit was less than all projections in a Bloomberg News survey. Exports rose 3.6 percent as companies shipped more capital goods and automobiles to overseas customers.

“This dispels some fears that the weakening of developed economies is greatly undermining U.S. trade,” Sal Guatieri, a senior economist at BMO Capital Markets in Toronto, said before the report.

The global slowdown and Europe’s debt crisis have raised concerns of a diminishing international flow of goods and services the rest of this year. Sustained growth in exports may help U.S. manufacturers weather weaker demand from American consumers and businesses that’s restraining the recovery.

The trade gap was projected to shrink from an initially reported $53.1 billion in June, according to the median forecast of 74 economists surveyed by Bloomberg. Estimates ranged from deficits of $55 billion to $46 billion.

After eliminating the influence of prices to render the figures used in calculating gross domestic product, the trade deficit narrowed to a three-month low of $45.3 billion from $50.3 billion. The number was less than the $47.3 billion deficit averaged in the second quarter, indicating trade may add to growth this quarter.

Exports increased to $178 billion, boosted by sales of telecommunications equipment, civilian aircraft, autos and industrial engines. U.S. shipments of capital goods and autos and parts to overseas customers were the highest on record.

Imports fell 0.2 percent to $222.8 billion from $223.4 billion in the prior month.

The figures showed a reduction in demand for crude oil as the price per barrel exceeded $100 in July for a fourth month. The average price of imported crude oil was $104.27 compared with $106 in June, today’s report showed. U.S. companies imported 350,657 barrels in July, the fewest since April.

Imports in July reflected $22.3 billion in shipments of auto parts, the most since February 2008. Parts deliveries from Japan have started to recover after the nation’s March earthquake and tsunami. Automobile-related goods have been entering the U.S. at about 50 percent of the rate before the natural disaster, according to Richard Steinke, executive director of the Port of Long Beach.