US Trade Deficit Widens Slightly Due to Increased Imports

Government data released on Wednesday showed that a rise in imports resulted in a slight widening of the US trade deficit in July, although the increase was smaller than analysts had anticipated.

According to the Commerce Department, the country's trade gap expanded to $65.0 billion in July, up from June's revised figure of $63.7 billion.

However, this figure remained below the second-quarter average, as estimated by analysts.

In the latest data, imports increased by 1.7 percent to $316.7 billion, while exports saw a 1.6 percent rise to $251.7 billion.

Notably, imports of consumer goods, such as mobile phones and pharmaceutical preparations, increased, along with semiconductors, as indicated in Wednesday's report.

Despite signs of a slowing US economy, robust consumer spending has contributed to the strength of US trade. However, this could potentially weaken as rapid interest rate hikes by the central bank, aimed at curbing inflation and cooling demand, ripple through the world's largest economy.

In terms of goods exports in July, automotive vehicles, parts, and engines saw an increase, along with industrial supplies.

The trade deficit in goods with China rose by $1.2 billion to $24.0 billion in July, driven by a larger increase in imports compared to exports.

Source: Rastriya Samachar Samiti (RSS)