U.S. trade deficit hits 10-month high in June: 8.7% increase, $43.2 BILLION
WASHINGTON (MarketWatch) — The U.S. trade deficit jumped 8.7% in June to a 10-month high of $44.5 billion, reflecting the higher cost of oil and more imports of consumer goods such as cellphones and drugs.
Economists polled by MarketWatch had expected the trade gap to rise to $43.2 billion from a revised $41 billion in May.
Although a higher deficit subtracts from gross domestic product, the official scorecard of the nation’s growth, more demand for consumer goods suggests Americans are still spending at a pace consistent with a fairly healthy, albeit slowly, expanding economy.
U.S. imports increased 1.9% in June to a seasonally adjusted $227.7 billion the government said Friday.
U.S. exports edged up 0.3% to $183.2 billion. The U.S. exported less oil and fewer new autos in June.
The trade gap with China advanced to $29.8 billion and hit the highest level since last November. Higher purchases of electronic and other consumer goods were behind the increase. – READ MORE