US Goods Trade Deficit Narrows in June; Inventories Increase

TRADE BALANCE - WASHINGTON. The U.S. trade deficit in goods narrowed in June amid a broad rebound in exports, but that probably was insufficient to prevent trade from remaining a drag on economic growth in the second quarter.

The impact on gross domestic product from the trade gap is, however, likely to be offset by a rise in inventories at wholesalers and retailers in June. The government is scheduled to publish its advance estimate of second-quarter GDP growth on Thursday, which is expected to show a pick-up in activity, thanks to a spurt in consumer spending in June.