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U.S. trade deficit surpasses forecasts in June

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Staff Writer | August 6, 2016
America's trade deficit with other economies jumped sharply in June as strong consumer spending stoked demand for imports.
U.S. trade deficit
Economy in America   Purchases from overseas jumped 1.9% month-on-month
The shortfall increased 8.7% from $44.5bn, according to the Department of Commerce. That was above the $43bn which economists had been expecting.

Purchases from overseas jumped 1.9% month-on-month to $227.7bn - the most since September - as Americans picked up $1.87bn more consumer goods, especially pharmaceuticals and cell phones. Exports increased 0.3% over the month to $183.2bn.

A rise in crude oil prices also meant the US had to fork out $1.43bn more for the barrels it imported.

To take note of, particularly ahead of the November presidential elections in the States, the bilateral trade deficit with China expanded from $29bn in May to $29.8bn in June, the most since November 2015.

Year-to-date, the goods and services deficit decreased $5.8bn, or 2.3%, from the same period in 2015. Exports decreased $54.2bn or 4.7%. Imports decreased $60.0bn or 4.3%.