US trade deficit widens by 7.1% in June, showing effect of firm dollar

Washington

THE trade deficit in the US widened in June as the strong dollar lifted imports and hobbled exports, representing a hurdle for economic growth.

The gap grew by 7.1 per cent to US$43.8 billion, the largest in three months, Commerce Department figures showed on Wednesday in Washington. The median forecast in a Bloomberg survey of 67 economists called for a widening to US$43 billion.

A firm dollar, which makes American goods relatively more expensive, and weak demand overseas are weighing on manufacturers and preventing the world's largest economy from gaining momentum. At the same time, rising orders from US customer…