US trade gap yawns wider as imports outpace exports

US trade gap yawns wider as imports outpace exports

WASHINGTON: The US trade deficit rose in August with imports overwhelming exports as the US economy bounces back from last year’s pandemic shock, government data said yesterday. The Commerce Department reported the trade deficit climbed to $73.3 billion from the upwardly revised $70.3 billion the month prior, more than analysts had expected and 4.2 percent higher than in July.

Both exports and imports increased, but fewer car and airplane sales held back the former, while consumer demand fueled the rise in the latter, according to the data. The overall deficit was a new record high and $31.7 billion larger than before the pandemic, said Mahir Rasheed of Oxford Economics, who predicted it would widen “slightly further” by the end of the year as vaccine inequality and supply snarls global growth.

“Moderating domestic demand will continue to slow import volumes over the coming months, while a steady pick up in foreign consumption will drive stronger exports” in the fourth quarter, he added. Overall, imports rose $4 billion to $287 billion from July, while exports climbed to $213.7 billion, an increase of $1 billion. Imports of both goods and service increased, with consumer goods rising $3 billion and industrial supplies and materials rising $1.8