The U.S. Commerce Department reported on Thursday that the U.S. goods and services trade deficit narrowed to $70.0 billion in July from a revised $73.2 billion in the previous month (originally a gap of $75.7 billion). This was the smallest trade deficit in the last three months.

Economists had expected a deficit of $71.0 billion.

According to the report, the July decrease in the goods and services deficit reflected a decline in the goods deficit of $5.5 billion to $87.7 billion and a drop in the services surplus of $2.4 billion to $17.7 billion.

In July, exports of goods and services from the U.S. jumped 1.3 percent m-o-m to $212.8 billion, while imports edged down 0.2 percent m-o-m to $282.9 billion, as the global COVID-19 pandemic and the economic recovery continued to impact international trade.

Year-to-date, the goods and services deficit surged 37.1 percent from the same period in 2020. Exports soared 16.8 percent, while imports climbed 21.3 percent.