U.S. Trade Deficit Narrowed in July as Exports Rose

The trade deficit narrowed by 14 percent in July as exports by American companies rose by about $2.8 billion, according to government figures released on Thursday. The figures suggested that trade would have less of a drag on growth in the months ahead than it did in the second quarter.

The Department of Commerce statistics showed that exports totaled $153.3 billion in July, up from $150.6 billion in June. A $2.3 billion increase in capital goods, most of it civilian aircraft, accounted for the bulk of the export increase. Industrial supplies and materials, and food and beverages also rose.

The trade deficit narrowed to $42.8 billion, down from a revised $49.8 billion in June, the department said. Imports totaled $196.1 billion in July, $4.2 billion less than June. Most of the decline, $1.9 billion, came from fewer consumer goods being brought into the country.

Economists said that the smaller trade deficit in July suggested there would be less of an impact on the third-quarter gross domestic product than the deficit had in the second quarter. G.D.P. was revised downward to 1.6 percent from 2.4 percent for the second quarter, partly because of the expanded June trade deficit, which had a 3.4 percentage point drag on growth that quarter.

The outlook depended on whether consumer demand picked up in the months ahead, an uncertainty because of the weak job market. The decline in imports suggested that American consumers were still focused on increasing savings rather than on spending.