US trade deficit widens in July; capital goods imports hit record high
SPY•Trade deficit widens as imports surge
WASHINGTON, Sept 3 (Reuters) - The U.S. trade deficit widened sharply in July as strong domestic demand boosted imports, positioning trade to exert another drag on economic growth in the third quarter.
The trade shortfall increased 24.4% to $88.6 billion, the Commerce Department's Bureau of Economic Analysis and Census Bureau said on Thursday. Economists polled by Reuters had forecast the deficit at $90.0 billion.
The deterioration was flagged by data last week showing an import-driven surge in the goods trade deficit in July.
Domestic demand soared in the second quarter, a combination of both strong consumer spending and business investment in artificial intelligence. Demand is, however, being satiated with imports, helping to widen the trade deficit.
