US goods-trade deficit widens to record $82.9 billion in August as imports surge
- The US goods-trade deficit widened to a record in August as companies rushed to meet stronger consumer spending with increased importing.
- The trade gap jumped to $82.9 billion from $80.1 billion, the Commerce Department reported Thursday. Economists surveyed by Bloomberg expected a reading of $81.8 billion.
Importsclimbed 3.1% to $201.3 billion as US firms took in larger shipments of autos and consumer goods. Exportsrose 2.8%, with industrial supplies and food and beverages leading the gains.
The US goods-trade gap widened to a record in August as American firms rushed to meet growing demand with increased import activity.
The deficit increased to $82.9 billion from $80.1 billion, the Commerce Department reported Thursday. Economists surveyed by Bloomberg expected an August reading of $81.8 billion. Exports of US goods last month increased 2.8% billion to $118.3 billion, while imports leaped 3.1% to $201.3 billion.
The uptick placed imports within spitting distance of their pre-pandemic highs. The swelling deficit foreshadows a prolonged and vulnerable recovery for
"A second wave of global virus cases and ever more fragile US demand mean the trade recovery is at risk of running out of steam," Watson wrote in a note.
Read more: The CEO of a $41 billion money manager says there will be 'bountiful buying opportunities' with higher volatility heading into year-end — and shares 4 high-dividend-paying stocks to play this market
The leap in imports arrives as consumer spending gauges slowly track higher amid economic reopening. Shipments into the US were also likely boosted by preparations for holiday season sales.
Industrial supplies and food and beverages saw the biggest increases in month-over-month exporting. Consumer goods and autos led the jump in import activity, according to the Commerce Department.
Retail inventories for August gained 0.8% to $599.7 billion but remain 10.1% lower from the year-ago reading. Wholesale inventories climbed 0.5% to $637 billion and sit 5% lower from the August 2019 level.
- 10 cool places to hangout in Mumbai
- Indian festival holiday calendar for October and November 2023 at a glance
- Banks closed for 1/3rd of October 2023 – Check out dates and details
- Tax-friendly destinations: A guide to the world's lowest taxes countries
- Commercial LPG prices hiked by ₹209 across India