US: Widening goods trade deficit in July – Nomura

Analysts at Nomura note that the US advance indicators report from the Census Bureau showed a widening goods trade deficit in July of $72.2bn (Nomura: $69.1bn, Consensus: $69.0bn).

Key Quotes

“Goods exports declined 1.7%, led by a 6.7% fall in exports of foods, feeds and beverages, possibly related to payback from expedited shipments in earlier months in advance of the retaliatory tariffs.”

“Capital goods exports declined 1.7%, while consumer goods exports fell 2.5%. Imports increased 0.9% with only consumer goods imports declining during the month.”

“Wholesale and retail inventories both increased strongly in the advanced report for July, up 0.7% and 0.4%, respectively, suggesting steady inventory accumulation during the month.”