US trade deficit widens in July on imports
The trade gap increased to US$78.8 billion
THE US trade deficit in July expanded to its largest since mid-2022, according to government data released on Wednesday (Sep 4), as imports rose more quickly than exports.
Overall, the trade gap widened to US$78.8 billion, from a revised US$73.0 billion in June, the Department of Commerce said.
Imports jumped 2.1 per cent to US$345.4 billion, boosted by capital goods like computer accessories and industrial supplies.
Exports, meanwhile, edged up 0.5 per cent to US$266.6 billion.
Among segments, exports of semiconductors rose but auto shipments and that of consumer goods fell as well.
US consumer demand has held up in the face of high interest rates, even as the central bank hiked the benchmark lending rate in recent years to counter soaring inflation.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Households have continued spending, dipping into savings, supported by a robust jobs market.
A reduction in interest rates, widely expected later this month, could bring the world’s biggest economy a further boost.
Exports have had a harder time with global demand weakening and with a strong dollar, analysts earlier noted.
In July, the US goods deficit with China increased by US$4.9 billion to US$27.2 billion, as exports fell and imports picked up. AFP
Share with us your feedback on BT's products and services
