The U.S. Commerce Department reported on Wednesday U.S. the goods and services trade deficit narrowed to $54.0 billion in July from a revised $55.5 billion in the previous month (originally a gap of $55.2 billion).

Economists had expected a deficit of $53.5 billion.

According to the report, the July decrease in the goods and services deficit reflected a decline in the goods deficit of $1.6 billion to $73.7 billion and a drop in the services surplus of $0.1 billion to $19.7 billion.

Exports of goods and services from the U.S. rose 0.6 percent m-o-m to $ 207.4 billion in July, while imports edged down 0.1 percent m-o-m to $261.4 billion.

Year-to-date, the goods and services deficit surged 8.2 percent from the same period in 2018. Exports fell 0.2 percent, while imports rose 1.4 percent.