US goods trade deficit widens sharply in August
SPY•The US goods trade deficit widened 11.5% to $132.6 billion in August, above economists’ $115.0 billion forecast, as imports surged. Goods imports rose 5.5% to $336.1 billion, while exports increased 1.9% to $203.4 billion.
1. Imports surge
The US goods trade shortfall widened 11.5% to $132.6 billion in August, the Commerce Department's Census Bureau said. Economists polled by Reuters had forecast a $115.0 billion deficit. Imports rose $17.4 billion, or 5.5%, to $336.1 billion, led by a 16.6% jump in industrial supplies; capital goods imports rose 4.0%, while consumer goods imports fell 1.6%.
2. Exports and inventories
Goods exports advanced $3.7 billion, or 1.9%, to $203.4 billion. Industrial supplies exports rose 8.3%, while shipments of consumer goods fell 10.5%, motor vehicles and parts decreased 6.9%, and food exports declined 5.6%. Trade has subtracted from GDP for three straight quarters; August wholesale inventories increased 0.7% and retailer stocks climbed 0.3%.
