US trade deficit surges by 7.9 percent to reach USD78.8B in July, highest since mid-2022
(MENAFN) The US trade deficit surged 7.9 percent to reach USD78.8 billion in July, marking its highest level since mid-2022, as reported by the Commerce Department's Census Bureau on Wednesday. This increase aligns with market expectations, while the trade deficit for June was slightly adjusted to USD73 billion from an earlier figure of USD73.1 billion. This notable rise underscores a widening gap between the value of imports and exports, reflecting ongoing trade imbalances.
In July, exports totaled USD266.6 billion, which was an increase of USD1.3 billion compared to June. Meanwhile, imports saw a more significant rise, reaching USD345.4 billion—USD7.1 billion higher than the previous month. The Census Bureau noted that the growth in the trade deficit was primarily due to a larger goods deficit, which expanded by USD5.6 billion to USD103.1 billion, while the services surplus decreased slightly by USD0.2 billion to USD24.3 billion.
Year-to-date, the goods and services deficit has grown by USD36.2 billion, or 7.7 percent, compared to the same period in 2023. During this period, exports have risen by USD65.9 billion, or 3.7 percent, while imports have increased by USD102.1 billion, or 4.5 percent. This data highlights a significant imbalance between the growth rates of exports and imports, contributing to the widening trade deficit.
The increase in the deficit reflects broader economic trends, including shifts in global trade patterns and domestic economic conditions. The data indicates that while export levels have improved, they have not kept pace with the growth in imports, further exacerbating the trade imbalance and impacting the overall economic landscape.
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