USPS posts net loss of $764 million in July

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Washington, D.C.—Despite a resurgence of commercial direct mail, the U.S. Postal Service continues to hemorrhage money, posting a net loss of $764 million in July. The Postal Service reported a year-to-date loss of $6.14 billion, with just two months left before its fiscal year closes Sept. 30.

Overall, total mail volume increased about 1% in July to 13.8 million pieces compared with the same period last year, led by a continuing strong performance by standard mail, used most often in direct commercial mailings.

Standard mail volume increased 6.6% to 6.9 million pieces, with revenue up 4.8% at $1.4 billion.

Other mailing classes, however, continued to slide, as consumers and businesses increasingly used digital forms of communications. First-class mail volume totaled 6.3 million pieces in July, down 3.6%, with first-class mail revenue down 3.7% to $1.4 billion.

Package services volume also showed gains in July, up 2.3% to 52.6 million pieces—another indicator of business support—but revenue fell 10.3% to $111.6 million. This mailing category is underpriced, according to the Postal Service, prompting it to request a 23% increase in small package rates for next year.

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