Trade Deficit Falls To 4-Month Low

Tuesday, August 14th 2007, 7:44 am

By: News On 6

WASHINGTON (AP) _ The U.S. trade deficit dropped to a four-month low in June as record exports of farm goods and autos offset a jump in crude oil prices. Imports from China hit an all-time high despite recalls of tainted Chinese products.

The Commerce Department reported Tuesday that the trade deficit dropped to $58.1 billion in June, a 1.7 percent decrease from May and the lowest imbalance since February.

The decline caught analysts by surprise. They had been looking for a small increase reflecting the fact that global oil prices have been rising.

U.S. exports and imports both set records in June. Exports of goods and services rose by 1.5 percent to $134.5 billion, reflecting big increases in the sale of farm products such as corn and meat and in semiconductor chips and autos. Imports also set a record, rising by 0.5 percent to $192.7 billion as both the amount of foreign crude oil rose to the highest level in nine months.