WASHINGTON: The US trade deficit rose more than expected in August as a rise in imports offset higher exports. The Commerce Department said on Wednesday the trade gap widened 3% to US$40.73 billion. Imports hit their highest level since September 2015 while exports were the highest since July of last year. The July trade deficit was revised to US$39.55 billion from a previous US$39.47 billion.
Economists polled by Reuters had forecast the trade gap decreasing to US$39.3 billion in August. When adjusted for inflation, the deficit fell to US$57.48 billion from a revised US$58.23 billion in July. The dollar held modest losses against a basket of currencies after the data. US stock futures were trading slightly higher and prices for longer-dated US Treasuries were lower. Exports have begun to slowly shake off the lingering effects of the dollar, which had strengthened for much of the past two years against the currencies of the United States’ major trading partners.
A separate report on Wednesday by a leading payrolls processor showed US private employers added 154,000 jobs in September, slightly below economists’ expectations. The more closely-watched monthly US jobs report is scheduled for release on Friday. In August, exports of goods and services edged up 0.8% to US$187.85 billion. Exports to China rose 2.6% and were up 1.2% to the European Union. Exports to the United Kingdom rose 2.4%.
Imports of goods and services increased 1.2% to US$228.58 billion in August. Oil prices averaged US$39.38 per barrel in August, down 20.2% from a year ago. Imports from China increased 9.5% while the politically sensitive US-China trade deficit widened 11.6% to US$33.85 billion in August.
