The trade deficit grew as expected jumping up $4.8 billion to $75.7 billion in June, according to the latest data released by the Bureau of Economic Analysis (BEA)
- EXPORTS: Were up $1.2 billion dollars from May to $207.7 billion
- IMPORTS: Were up $6.0 billion dollars from May to $283.4 billion.
NOTE: The increase was a result of a 4.0 billion dollar increase in our goods deficit and a $0.7 billion dollar decrease in the service surplus.
Why this matters. Contrary to popular belief, a rising trade deficit is a good thing. As CATO’s Scott Lincicome noted on Twitter, it is a “Clear sign of a recovering (if not booming) US economy.” Over the last twenty years, the only time our trade deficit contracted was during economic retractions and during boom times it expanded. that is more than likely the case now.
