MARTIN CRUTSINGER, AP Economics Writer
WASHINGTON – The U.S. trade deficit grew to $42 billion in July, widened by fewer exports to Europe, India and Brazil that offset a steep decline in oil imports.
The Commerce Department said Tuesday that the trade deficit increased 0.2 percent from June’s deficit of $41.9 billion.
U.S. exports fell 1 percent to $183.3 billion. Sales of autos, telecommunications equipment and heavy machinery all declined. Imports dropped 0.8 percent to $225.3 billion.
Economists note that the deficit would have grown much faster had it not been for a 6.5 percent drop in oil imports, largely reflecting cheaper global prices. Prices have increased since then, while demand for exports has dampened.