WASHINGTON, Sept 30 (Reuters) – The US trade deficit in goods widened sharply in August amid a surge in imports, suggesting that trade could remain a drag economic growth in the third quarter.
The goods trade shortfall increased 11.5% to $132.6 billion last month, the Commerce Department’s Census Bureau said on Wednesday. Economists polled by Reuters had forecast the goods deficit at $115.0 billion.
Goods imports soared $17.4 billion, or 5.5%, to $336.1 billion. They were driven by a 16.6% jump in imports of industrial supplies, which include petroleum. Capital goods imports rose 4.0% amid an AI infrastructure buildout. Food imports increased 5.5%. But consumer goods imports fell 1.6%.
Exports of goods advanced $3.7 billion, or 1.9%, to $203.4 billion. Exports of industrial supplies rose 8.3%. But shipments of consumer goods dropped 10.5%, while those of motor vehicles and parts decreased 6.9%. Food exports declined 5.6%.
Trade has subtracted from gross domestic product for three straight quarters. Some of the hit from the trade deficit on GDP growth could be blunted by rising inventories. The Census report showed wholesale inventories increased 0.7% in August while stocks at retailers climbed 0.3%.
(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)
