US trade deficit widens unexpectedly in August
By Alexander Bueso
Date: Tuesday 06 Oct 2020
(Sharecast News) - America's shortfall in trade with the rest of the world widened a bit more quickly than expected in August.
According to the Department of Commerce, in seasonally adjusted terms the US trade deficit on goods and services increased at a month-on-month pace of 5.9% to reach $67.1bn (-$66.1bn).
Total exports did rise during the month, by 5.9% to $171.9bn, while imports were 3.2% higher at $239.0bn.
Offsetting the widening in the August trade deficit, July's print was revised slightly lower, from -$63.6bn to -$63.2bn.
The shortfall in trade on goods was the main culprit behind the increased deficit, widening by $3.0bn to $83.9bn.
Interpreting the latest figures, Andrew Hunter at Capital Economics said: "In real terms, exports look to have rebounded by about 80% annualised in the third quarter, with imports rising by about 90%, meaning that net trade would subtract more than 3.5%-pts from annualised GDP growth.
"That said, a lot of the strength of imports reflects the re-stocking of inventories, which should more or less cancel out that drag. In any case, the resurgence in consumption means that GDP growth still looks to have rebounded by close to 30% annualised."
Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange
Market.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN