THE U.S. trade deficit surged in August to the largest in 14 years with imports climbing again, suggesting that trade could be a drag on economic growth in the third quarter.
The Commerce Department said on Tuesday the trade deficit jumped 5.9% to US$67.1 bil, the widest since August 2006.
Economists polled by Reuters had forecast the trade gap widening to US$66.1 bil in August 2020.
Imports increased by 3.2% to US$239 bil, with goods imports rising around US$6.5 bil to US$203 bil and exports increased 2.2% to US$171.9 bil.
Meanwhile, goods exports rose around US$3.5 bil to US$119.1 bil.
The closely watched trade deficit with China decreased US$1.9 bil to US$26.4 bil in August 2020.
A smaller trade bill contributed to gross domestic product over the last three quarters, showing that the Covid-19 crisis severely disrupted trade flows, which are now picking up. – Oct 7, 2020
