US Goods and Services Deficit Narrows in June

The US trade deficit in goods and services shrank in June as imports fell more sharply than exports. Government data showed the gap narrowing from the prior month, with the change driven mainly by reduced purchases of foreign goods. Forecasts from several banks now point to a broader economic shift where business investment supports growth while household spending loses momentum. The Commerce Department release placed the June deficit at a lower level than May, though year-over-year comparisons still reflect elevated import volumes in some categories. Economists at major institutions noted that softening consumer demand could limit overall expansion unless capital spending accelerates. No single data point yet confirms whether the investment-led pattern will hold through the second half of the year.