Exports of U.S. goods rose for a fourth consecutive month in July -- up $0.9 billion -- while imports fell by a similar amount, according to a Census Bureau report.
Meanwhile, U.S. consumer prices posted a surprisingly large gain in August, according to the Labor Department.
The trade deficit shrank $1.8 billion, assuring that trade will provide a boost to GDP in the summer quarter.
"There is likely to be little, if any, improvement in the trade balance in the next few months," said Jim Haughey, Newport Communications' senior economist. "July imports fell because of the late spring weakness in retail sales, an earlier import surge to beat a feared West Coast port strike and the 5% decline in the value of the dollar since February. Those are all behind us now. Retail sales have recovered strongly and the dollar has temporarily risen 3%."
Haughey said that the trade outlook calls for exports to continue rising at about the same pace through 2003 as the world economy strengthens and the dollar resumes depreciating as much as 10% more. Imports will also be growing, but more slowly than exports as import prices progressively rise compared to prices of domestic goods.
"The July decline in imports was heavily consumer packaged goods moved in dry vans," said Haughey. "The July export increase was mostly airplanes and capital equipment, but more dry van export freight is coming as U.S.-made goods become more price competitive."
Gains in U.S. consumer prices in August were the result of higher energy prices and an upturn in tobacco prices, the government said Wednesday.
The Labor Department said the Consumer Price Index (CPI) rose 0.3% in August, its biggest gain since April. The index was also up 0.3% excluding food and energy prices, which can vary sharply on a monthly basis.
Energy prices gained 0.6%, the biggest monthly advance since April. Tobacco prices rose 2.4%, while clothing prices gained 1.1%, their biggest increase since March. Housing costs, which make up more than 40% of the CPI, also rose 0.3%.
For the 12 months ending in August, consumer prices were up 1.8%, the largest gain since November of last year.
Meanwhile, U.S. consumer prices posted a surprisingly large gain in August, according to the Labor Department.
The trade deficit shrank $1.8 billion, assuring that trade will provide a boost to GDP in the summer quarter.
"There is likely to be little, if any, improvement in the trade balance in the next few months," said Jim Haughey, Newport Communications' senior economist. "July imports fell because of the late spring weakness in retail sales, an earlier import surge to beat a feared West Coast port strike and the 5% decline in the value of the dollar since February. Those are all behind us now. Retail sales have recovered strongly and the dollar has temporarily risen 3%."
Haughey said that the trade outlook calls for exports to continue rising at about the same pace through 2003 as the world economy strengthens and the dollar resumes depreciating as much as 10% more. Imports will also be growing, but more slowly than exports as import prices progressively rise compared to prices of domestic goods.
"The July decline in imports was heavily consumer packaged goods moved in dry vans," said Haughey. "The July export increase was mostly airplanes and capital equipment, but more dry van export freight is coming as U.S.-made goods become more price competitive."
Gains in U.S. consumer prices in August were the result of higher energy prices and an upturn in tobacco prices, the government said Wednesday.
The Labor Department said the Consumer Price Index (CPI) rose 0.3% in August, its biggest gain since April. The index was also up 0.3% excluding food and energy prices, which can vary sharply on a monthly basis.
Energy prices gained 0.6%, the biggest monthly advance since April. Tobacco prices rose 2.4%, while clothing prices gained 1.1%, their biggest increase since March. Housing costs, which make up more than 40% of the CPI, also rose 0.3%.
For the 12 months ending in August, consumer prices were up 1.8%, the largest gain since November of last year.
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