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- U.S. trade deficit widens more than expected in July
U.S. trade deficit widens more than expected in July
The U.S.
Commerce Department reported on Thursday that U.S. the goods and services trade
deficit widened to $63.6 billion in July from a revised $53.5 billion in the
previous month (originally a gap of $50.7 billion). That was the highest trade gap since
July of 2008.
Economists had
expected a deficit of $58.0 billion.
According to
the report, the July increase in the goods and services deficit reflected an
increase in the goods deficit of $9.3 billion to $80.9 billion and a decrease
in the services surplus of $0.8 billion to $17.4 billion.
In July,
exports of goods and services from the U.S. climbed 8.1 percent m-o-m to $168.1
billion, while imports surged 10.9 percent m-o-m to $231.7 billion, in part,
due to the impact of COVID-19, as many businesses continued to operate at
limited capacity or ceased operations completely, and the movement of travelers
across borders remained restricted.
Year-to-date,
the goods and services deficit declined 1.8
percent from the same period in 2019. Exports plunged 17.5
percent, while imports tumbled 13.8 percent.
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