The July 2010 U.S. trade deficit decreased from last month's $49.8 billion to $42.8 billion. That is a 14% U.S. trade deficit decrease in one month, yet a yo-yo effect, bringing the trade deficit back about the same level as May 2010. U.S. exports increased by $2.8 billion, to $153.3 billion, while imports decreased $4.2 billion, to $196.1 billion.

For the year imports are 1.4 times larger than exports. From the report:

The goods and services deficit increased $9.7 billion from July 2009 to July 2010. Exports were up $23.7 billion, or 18.3 percent, and imports were up $33.4 billion, or 20.5 percent.

Below are imports vs. exports of goods from the official start of this recession. Notice how the July trade deficit numbers are pretty much a return to May 2010 export and import levels. Also notice how exports is nowhere near pre-recession levels and even then, the trade deficit was a horrific economic problem.

The change was almost all goods, services was unchanged from last month. Capital goods exports increased $2.3 billion while automotive decreased $0.4 billion. Think about all of those GM cars being sold in China, yet we have a decrease in automotive parts, vehicles and engine exports.

The decrease in imports was primarily consumer goods, $1.9 billion.

Advanced technology, ya know those jobs of the future, had a sign of life.

Advanced technology products exports were $23.9 billion in July and imports were $30.8 billion, resulting in a deficit of $6.8 billion. July exports were $0.7 billion more than the $23.2 billion in June, while July imports were $0.8 billion less than the $31.6 billion in June.

Below is the annual percent change of Chinese imports into the United States. This percentage and raw China trade deficit total is not seasonally adjusted.

Here is June's report (unrevised).