The trade deficit in the US unexpectedly widened in June to the highest level since October 2008 as consumer goods imports rose to a record and exports declined.
The gap grew 19 percent to US$49.9 billion in June, US Department of Commerce figures showed yesterday in Washington. A US$42.1 billion deficit was projected by economists, according to the median forecast in a Bloomberg News survey. Imports climbed 3 percent, while exports dropped 1.3 percent, the most since April last year.
Increased business investment and consumers who are still spending are helping sustain the US appetite for merchandise made abroad. At the same time, growth in emerging economies such as China may cool, limiting shipments abroad that have benefited companies such as Caterpillar Inc. The figures signal trade subtracted more from second-quarter GDP than previously estimated.
“Consumer spending may be slow but it remains in full recovery so demand for imported goods is in the process of climbing back,” Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd in New York, said before the report. “The economic recovery remains on track.”
Estimates of 73 economists surveyed by Bloomberg ranged from deficits of US$38 billion to US$50 billion. The gap in May was US$42 billion.
The June balance adjusted for inflation, which is the figure used to calculate GDP, increased to US$54.1 billion, the highest since February 2008, from US$46 billion in May. The gap was larger than the average US$42.3 billion a month in the first quarter.
Exports from the US decreased to US$150.5 billion from US$152.4 billion, reflecting fewer shipments abroad of semiconductors, computers and steelmaking materials.
Imports increased in June to US$200.3 billion from US$194.4 billion, led by telecommunications equipment, automobiles and consumer goods such as pharmaceutical preparations, televisions and furniture.
The quantity of imported petroleum increased, while the price per barrel fell to US$72.44 from US$76.93 the prior month, according to yesterday’s report.
The outlook for exports may be tempered. European default concerns beginning in April sparked fears of financial contagion, while China and India, the world’s two fastest-growing major economies, are taking steps to prevent their expansions from overheating. Growth in Canada, the US’ largest trading partner, is slowing.
The US shortfall with China widened to US$26.2 billion in June, the highest since October 2008, as imports from the Asian nation jumped, the Department of Commerce said.
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