the us trade deficit narrowed in july for the fourth month in a row as global demand for us goods and tourism strengthened while us shoppers appetite for imports weakened the trade gap in goods and services shrank by 126 in july from the prior month to a seasonally adjusted 7065 billion the commerce department said wednesday exports grew 02 to 25929 billion helped largely by higher shipments of capital goods like computers and industrial machinery spending by foreign visitors which is counted as a services export also picked up as covid19 travel restrictions eased and more vacationers came to the us imports fell 29 to 32994 billion reflecting declines in american purchases of consumer goods and industrial supplies recent surveys have pointed to a sharp slowdown in global economic growth as higher prices weaken consumer demand and the war in ukraine scrambles supply chains a strong dollar makes imports cheaper for us consumers while lifting the cost of us goods abroad which can hurt exporters and spur inflation abroad imports fell in july for the second month in a row amid weak consumer confidence readings due to high gasoline prices and inflation while consumers have continued to boost their spending modestly as inflation cuts into their purchasing power sentiment readings remain sour according to recent surveys although the us trade deficit has narrowed in recent months it remains wide by historical comparison before the covid19 pandemic the trade deficit hovered for years between 40 billion and 50 billion a month