US trade deficit jumps to largest in 14 years in August

The US trade deficit surged in August to the largest in 14 years with imports climbing again, suggesting that trade could be a drag on economic growth in the third quarter.

The Commerce Department said on Tuesday the trade deficit jumped 5.9pc to $67.1 billion, the widest since August 2006.

Economists polled by Reuters had forecast the trade gap widening to $66.1 billion in August.

Imports increased by 3.2pc to $239 billion. Goods imports rose $6.5 billion to $203 billion. Exports increased 2.2pc to $171.9 billion. Goods exports rose $3.5 billion to $119.1 billion.

Article continues after this advertisement

The closely watched trade deficit with China decreased $1.9 billion to $26.4 billion in August.

A smaller trade bill contributed to gross domestic product over the last three quarters. The coronarivus crisis severely disrupted trade flows, which are now picking up.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Must Read

Exports to Australia surge 29pc in 10MFY21

ISLAMABAD: Adviser to the Prime Minister on Commerce, Textile, Industry and Production Abdul Razak Dawood said on Sunday that the country’s exports were gradually...