The rebound in the monthly trade deficit to $39.1bn in July, from $34.5bn in June, is nothing to worry about. For a start, it didn't even fully reverse the unexpected decline in the deficit in June, from $43.7bn in May. The latest survey evidence points to a sharp pick-up in the growth of both exports and imports and net external trade should be broadly neutral for GDP growth over the second half of this year.
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