The U.S. trade balance deficit was reduced amidst dropping of the U.S. dollar during the last period which supported the exports of goods. During the month of June, deficit in the trade balance reached 42.9 billion dollars compared with the previous deficit which reached a high of 48.0 billion dollars, beating the expectations that predicted deficit to reach 47.5 billion dollars. This is in line with what was issued by the U.S. Department of Commerce on Thursday.
Despite the increase in U.S. exports in June to 184.97 billion dollars, compared with the previous reading, which amounted to 183.31 billion dollars, a rise by 0.9% during the same month compared with 0.3%, imports fell to the lowest values during the same month. They went down by 1.5 percent reaching 227.89 billion dollars, compared with the previous reading, which amounted to 231.35 billion dollars.
It is worth mentioning that the drop of U.S. dollar against major currencies during the recent period contributed to the shrinking trade deficit accompanied with dropping of crude oil prices, which during the same period supported the U.S. trade balance. Such balance has seen during this past June contraction in it's deficit at best levels since early 2011.
Obstacles are still standing in front of U.S. economy as we have stated above, as unemployment rates are still among its highest levels since about a quarter of a century. In addition, banks did not stop tightening credit conditions which is the heaviest burden of expenditure and income for consumers.