News Summary: US trade deficit widened in July
DEFICIT WIDENS: 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.
EXPORTS AND OIL: U.S. exports fell 1 percent to $183.3 billion, while imports dropped 0.8 percent to $225.3 billion. 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.
OUTLOOK: The U.S. deficit will likely keep growing in the coming months as weaker global growth hurts exports and higher oil prices boost imports. That would drag on U.S. growth.