US trade deficit widens in August amid strong imports
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The US trade deficit widened to $105.6 billion in August as strong domestic demand pushed imports up by 4.3%.
- ✓The Commerce Department said the shortfall grew 13.7% last month.
- ✓Many businesses got more goods from abroad to meet consumer needs, which may now cut into overall economic growth this quarter.
Story at a Glance
- Category
- MARKET
- Reported By
- cnbctv18
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
The US trade deficit widened more than expected in August, driven by a surge in imports of goods amid robust domestic demand, keeping trade on track to again subtract from economic growth in the third quarter.
The trade shortfall increased 13.7% to $105.6 billion, the Commerce Department's Bureau of Economic Analysis and Census Bureau said on Tuesday. Economists polled by Reuters had forecast the deficit would be $102.0 billion.
The deterioration was flagged by data last week that showed an import-driven surge in the goods trade deficit in August.
Domestic demand increased at its fastest pace in more than 3-1/2 years in the second quarter, reflecting robust consumer spending and business spending on equipment, mostly related to AI. The trend appears to have spilled over into the third quarter, with data last month showing strong consumer spending in August as well as orders and shipments of nondefense capital goods, excluding aircraft.
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