US trade deficit hits record high in June thanks to strong import growth

0

Ships and shipping containers are pictured at the Port of Long Beach in Long Beach, California, United States, January 30, 2019. REUTERS / Mike Blake / File Photo

Register now for FREE and unlimited access to reuters.com

Register

WASHINGTON, Aug. 5 (Reuters) – The US trade deficit hit an all-time high in June as efforts by businesses to rebuild inventories to meet robust consumer spending attracted more imports.

The Commerce Department said on Thursday that the trade gap increased 6.7% to $ 75.7 billion in June, a record high.

Economists polled by Reuters had forecast a deficit of $ 74.1 billion. Imports of goods rose 1.8% to $ 239.1 billion, also a record. Exports of goods rose 0.2% to $ 145.9 billion in June, an all-time high.

Register now for FREE and unlimited access to reuters.com

Register

The government announced last week that consumer spending rose in the second quarter, with spending on goods rising steadily, even as demand returns for services due to COVID-19 vaccinations.

Double-digit growth in consumer spending in the last quarter helped keep the level of gross domestic product above its peak in the fourth quarter of 2019. Business inventories quickly depleted in the second quarter.

The US economy has rebounded faster after the pandemic than its main rivals due to massive fiscal stimulus, low interest rates and a high level of coronavirus vaccination. This puts pressure on the trade deficit, which has been subtracted from GDP for four consecutive quarters.

Register now for FREE and unlimited access to reuters.com

Register

Reporting by Lucia Mutikani; Editing by Kevin Liffey

Our standards: Thomson Reuters Trust Principles.

Share.

Comments are closed.