U.S. trade deficit in goods sinks 9.7% in July, inventories rise

WASHINGTON (MarketWatch) – An early look at U.S. trade patterns in July showed a 9.7% decline in the nation’s trade deficit. The trade gap in goods – services are excluded – fell to $89.1 billion from $98.6 billion in the prior month, the government said Friday. The deficit has shrunk after a record increase in the first quarter. Lower deficits add to gross domestic product. The government will release overall trade numbers next week. An advanced look at wholesale inventories, meanwhile, showed a 0.8% increase in July. And an early look at retail inventories reflected a 1.1% gain. Higher inventories add to GDP.