Overview:   Consumer credit fell by $3.6 billion to $2.42 trillion in July.  The U.S. trade deficit narrowed 14.1% to $42.8 billion in July.  Initial jobless claims fell by 27,000 to a level of 451,000 for the week ended 9/4.

Consumer credit fell by $3.6 billion to $2.42 trillion in July. Credit has now fallen in 20 of the past 22 months and has declined by a record $163 billion.

After reaching a 20-month high in June, the U.S. trade deficit in goods and services fell sharply in July.  The deficit narrowed $7.0 billion (14.1%) to $42.8 billion. Exports rose 1.8% while imports declined 2.1%. The rise in exports supports the notion that a manufacturing recovery is solidly underway, but the decline in exports is evidence that consumers are still wary to spend. The decline in exports had an adverse impact on our northern neighbors as the Canadian trade deficit widened to its highest level on record.

Initial jobless claims fell by 27,000 to 451,000 for the week ended September 4^th.