A hungry American economy powered by a strong U.S. dollar saw record imports in September, driving the U.S. trade deficit to its highest level in seven months, the government reported on Friday.
And amid President Donald Trump's trade war with Beijing, the U.S. trade deficit with China swelled again, as crucial soybean exports, a sore spot for Republicans in next week's midterm elections continued to suffer.
With rising wages and low unemployment, Americans purchased more foreign-made telecommunications equipment, computers, mobile phones, aircraft engines, clothing and toys, the Commerce Department said.
The U.S. trade deficit posted its fourth straight monthly increase, rising 1.3% to a seasonally adjusted US$54 billion, significantly overshooting analyst forecasts, as imports hit US$ 266.6 billion, the highest level ever recorded. Exports also rose to US$ 212.6 billion. The U.S. trade gap has increased a steep 10.1% so far this year.
The expanding trade gap should weigh on GDP calculations in the third quarter, although many estimates may already have factored in the trade drag.
Trade with China, a central target of Trump's aggressive economic agenda, was a clear culprit, as the deficit in goods with the world's second-largest economy jumped US$ 3 billion to US$ 37.4 billion, seasonally adjusted. Goods imports from China hit a record of US$ 47.7 billion, seasonally adjusted, an increase of US$ 3.5 billion from August.
The trade report showed American producers sold more gold, petroleum products and civilian aircraft, but exports of soybeans fell from August, also largely the result of the trade spat with China.
U.S. imports rose faster than exports on robust spending by companies and consumers driving the U.S. goods deficit to its highest level ever recorded at US$ 76.3 billion. US goods imports also were the highest ever, at US$ 217.6 billion.
Analysts say recent tax cuts and fiscal stimulus should support demand that outstrips domestic production, keeping imports high and allowing the trade gap to widen further.
Top Comments
Disclaimer & comment rulesMaga is killing it.
Nov 04th, 2018 - 06:38 pm 0Well done...reducing the US trade deficit was Trumps main economic goal...
Nov 05th, 2018 - 12:53 am 0Make America Great Again by increasing exports and reducing imports...again well done...
But Trump is close approaching MACA, the difference being crap! The GOP will lose the House…
Nov 05th, 2018 - 02:05 pm 0https://projects.fivethirtyeight.com/2018-midterm-election-forecast/house/?ex_cid=rrpromo
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