The U.S. monthly international trade deficit decreased in July 2014 according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit decreased from $40.8 billion in June (revised) to $40.5 billion in July as exports increased more than imports. The previously published June deficit was $41.5 billion. The goods deficit decreased $0.2 billion from June to $60.2 billion in July; the services surplus was nearly unchanged from June at $19.6 billion.
Exports of goods and services increased $1.8 billion in July to $198.0 billion, mostly reflecting an increase in exports of goods. Exports of services also increased.
- The increase in exports of goods was more than accounted for by increases in automotive vehicles, parts, and engines and in industrial supplies and materials. Partly offsetting were decreases in consumer goods and in foods, feeds, and beverages.
- The increase in exports of services reflected increases of less than $0.1 billion in several categories of services.
Imports of goods and services increased $1.6 billion in July to $238.6 billion, reflecting an increase in imports of goods. Imports of services were nearly unchanged.
- The increase in imports of goods was mostly accounted for by an increase in automotive vehicles, parts, and engines.
- Imports of services were nearly unchanged as an increase in other business services was mostly offset by a decrease in charges for the use of intellectual property, which decreased due to higher payments in June than in July for the rights to broadcast the 2014 soccer World Cup.
Goods by geographic area (seasonally adjusted, Census basis)
- The goods deficit with the European Union decreased from $11.5 billion in June to $9.5 billion in July. Exports increased $0.5 billion to $24.8 billion, and imports decreased $1.5 billion to $34.3 billion.
- The goods deficit with China decreased from $29.2 billion in June to $27.5 billion in July. Exports increased $0.1 billion to $9.8 billion, and imports decreased $1.6 billion to $37.3 billion.
- The goods deficit with OPEC increased from $3.6 billion in June to $4.9 billion in July. Exports increased $0.3 billion to $6.9 billion, and imports increased $1.5 billion to $11.8 billion.
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Personal Income rose 0.2 percent in July after rising 0.5 percent in June. Wages and salaries, the largest component of personal income, rose 0.2 percent in July after rising 0.4 percent in June.
Current-dollar disposable personal income (DPI), after-tax income rose 0.1 percent in July after rising 0.5 percent in June.
Real DPI, income adjusted for taxes and inflation, increased 0.1 percent in July after increasing 0.3 percent in June.
Real consumer spending, spending adjusted for price changes, decreased 0.2 percent in July after increasing 0.2 percent in June. Spending on durable goods decreased 0.6 percent in July after increasing 0.5 percent in June.
PCE prices increased 0.1 percent in July after increasing 0.2 percent in June. Excluding food and energy, PCE prices increased 0.1 percent in July, the same as in June.
Personal saving as a percent of DPI was 5.7 percent in July and 5.4 percent in June.
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Real gross domestic product (GDP) increased 4.2 percent in the second quarter of 2014, according to the “second” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP decreased 2.1 percent. The second-quarter growth rate was revised up 0.2 percentage point from the “advance” estimate released in July.
The upturn in real GDP growth was primarily driven by the following:
- Exports, mainly goods exports, increased after decreasing in the first quarter.
- Nonfarm inventory investment by motor vehicle dealers turned up.
- Consumer spending, notably motor vehicles and parts, increased more than in the first quarter.
In addition, business investment picked up, and state and local government spending increased after decreasing in the first quarter.
In contrast to these contributions, imports (a subtraction in the calculation of GDP) were higher in the second quarter than in the first quarter.
The 0.2 percentage point revision to second-quarter GDP growth primarily reflected an upward revision to business investment and a downward revision to imports. These revisions were partly offset by a downward revision to inventory investment.
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BEA’s featured measure of corporate profits increased 8.0 percent at a quarterly rate in the second quarter after decreasing 9.4 percent in the first quarter. The second-quarter increase was the largest since the third quarter of 2010.
- Profits of nonfinancial corporations rose 10.6 percent after falling 7.4 percent in the first quarter.
- Profits of financial corporations rose 7.3 percent after falling 17.1 percent.
- Profits from the rest of the world rose 1.2 percent after falling 6.1 percent.
Over the last 12 months, corporate profits fell 0.3 percent.
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