The United States goods trade deficit widened sharply in August as imports surged, a development that suggests trade could continue to weigh on economic growth in the third quarter, according to Reuters.

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The Commerce Department’s Census Bureau reported that the goods trade shortfall rose 11.5 percent to 132.6 billion dollars last month, Reuters said. Economists surveyed by Reuters had expected the goods deficit to come in at 115.0 billion dollars.

Goods imports climbed 17.4 billion dollars, or 5.5 percent, to 336.1 billion dollars. The increase was led by a 16.6 percent jump in imports of industrial supplies, a category that includes petroleum. Capital goods imports rose 4.0 percent amid an AI infrastructure buildout, while food imports increased 5.5 percent. Consumer goods imports, by contrast, fell 1.6 percent.

On the export side, goods exports increased 3.7 billion dollars, or 1.9 percent, to 203.4 billion dollars. Exports of industrial supplies rose 8.3 percent. However, shipments of consumer goods dropped 10.5 percent, motor vehicles and parts fell 6.9 percent, and food exports declined 5.6 percent.

Trade has subtracted from gross domestic product for three consecutive quarters. According to Reuters, some of the drag from the trade deficit on GDP growth could be offset by rising inventories. The Census report showed wholesale inventories increased 0.7 percent in August, while stocks at retailers rose 0.3 percent.

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https://www.indexbox.io/blog/us-goods-trade-deficit-widens-115-in-august-as-imports-surge/