Washington, September 10-- The trade deficit fell 8.9% in July to $50.15 billion July, the Commerce Department reported. This followed a record trade gap of $55.02 billion in June, which was revised down from the originally reported $55.82 billion.
The narrowing was an encouraging sign, but July's deficit was still the second highest on record and the second ever to exceed $50 billion. Economists had expected a slightly higher imbalance of $51.80 billion.
Exports rose 3% to $95.86 billion, supported by solid increases in sales of industrial supplies and capital goods. Imports fell 1.4% to $146.01 billion, reflecting a large drop in demand for foreign crude oil.
The nation's overall energy bill shrank in July to $14.18 billion from June's $15.22 billion. The average price of a barrel of crude eased to $33.28 from a 20-year high of $33.76 per barrel in June.
