US trade deficit shrinks as imports hit more than 1-1/2 year low arabnews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from arabnews.com Daily Mail and Mail on Sunday newspapers.
The U.S. trade deficit narrowed sharply in June as businesses cut back on purchases of foreign-made capital goods, resulting in imports falling to the lowest level in more than 1-1/2 years. The decline in imports reported by the Commerce Department on Tuesday potentially signals a slowdown in business investment and overall domestic demand amid hefty interest rate hikes from the Federal Reserve. "Weakening consumer demand for goods and retreating inventory growth by businesses have softened imports this year, while exports continue to trend downward as the global economic backdrop softens," said Matthew Martin, a U.S. economist at Oxford Economics.