Consumer credit increased 0.3% in June. Productivity advanced 1.6% in the 2nd quarter. The U.S. trade deficit narrowed 10.6% in June to $42.9 billion. The U.S. Treasury reported a $69.9 billion deficit in July. Initial jobless claims fell by 6,000 to a level of 361,000 for the week ended 8/4.
• Consumer credit increased $6.5 billion (0.3%) to $2.577 trillion in June. Revolving credit (i.e., credit cards) declined $3.7 billion (-0.4%) while non-revolving credit (i.e., auto loans) rose $10.2 billion (0.6%).
• Productivity advanced 1.6% in the 2nd quarter of 2012, according to the preliminary estimate. This follows a decline of 0.5% in the 1st quarter.
• The U.S. trade deficit unexpectedly narrowed $5.1 billion (10.6%) to $42.9 billion in June. Export increased by $1.7 billion to the highest ever monthly amount of $185 billion. Imports declined $3.5 billion to $227.9 billion as lower oil prices in June reduced the value of those imports. Despite the positive June report, caution has been given that a rising dollar and weaker demand in China and the troubled Eurozone are likely to weigh on U.S. trade in the coming months.
• The U.S. Treasury reported a deficit of $69.6 billion in July.
• Initial jobless claims declined 6,000 to a level of 361,000 for the week ended August 4th.