The U.S. trade deficit on goods and services increased $0.9 billion in June, from $28.5 billion in May. This change combines declines in both imports and exports, probably reflecting a decline in economic activity here and abroad. Among export categories, capital goods declined most. One key to interpreting this development is how quickly the recent drop in the dollar’s value abroad will boost U.S. exports and dampen imports.
Suggested citation: "International Developments," Federal Reserve Bank of Cleveland, Economic Trends, no. 01-09, pp. 08-09, 09.01.2001.