It reached 78.8 billion dollars in July, an increase of 7.9% over one month.
The U.S. trade deficit widened sharply in July from the previous month, beating analysts’ expectations, largely as imports rose more, both in percentage terms and in value, according to data released Wednesday by the Commerce Department.
The deficit in trade in goods and services with the rest of the world reached 78.8 billion dollars in July, up 7.9% compared to June, with a more marked increase in imports than in exports.
The deficit grew slightly more than expected by the markets, which had expected it to reach $78.5 billion, according to the consensus published by briefing.com.
Over one year, the increase in the deficit is 7.7%, or 36.2 billion dollars, also specified the Commerce Department, still due to a more marked increase in imports than exports, a sign that American household consumption remains sustained.
Chinese imports continue to weigh
Exports increased by $1.3 billion over the month, mainly due to higher sales of semiconductors but also goods and services to the government, which offset a decline in sales of passenger vehicles and raw materials, particularly precious stones.
On the import side, the increase is 7.1 billion dollars compared to June and mainly concerns goods, primarily computer equipment as well as raw materials for industry, the tourism sector being on the other hand slightly down.
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The geographical distribution of the deficit remains broadly unchanged, with regard to goods, the largest still concerning China, at 27.2 billion dollars, a sharp increase over one month, due to a drop in exports combined with an increase in imports.
The European Union remains in second place once again, with a US trade deficit of $18.4 billion, which is still concentrated in the same four countries: Germany, Ireland, Italy and France. Conversely, the United States still has a trade surplus with the Benelux.
Finally, Mexico and Vietnam complete the top 4 of the main trade deficits, with however for the first time in many months a decline concerning that with Vietnam, while that with Mexico remains almost stable.
