The US trade deficit widened more than expected in June as an acceleration in domestic demand in the second quarter and a strong dollar sucked in imports of food and automobiles.
The country’s Commerce Department said the trade gap increased 7.1% to $43.8 billion, which also reflected a second straight monthly drop in exports.
May’s trade gap was revised to $40.9 billion from the previously reported $41.9 billion.
Economists had forecast the trade deficit rising to $42.8 billion. When adjusted for inflation, the deficit increased to $59.3 billion in June from $57.6 billion in the prior month.
The trade data likely will have a marginal impact on the second quarter gross domestic product estimate released last week, as the deficit on the goods balance came in a bit higher than the advance figure incorporated in the GDP report.
In that report, the government estimated the economy expanded at a 2.3% annual pace, with trade adding 0.13 percentage point to GDP.
But following stronger-than-forecast construction and factory inventory data, economists expected GDP would be revised to as high as a 3% annual rate when the government publishes its second GDP estimate later this month.
via RTE [1]
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