U.S. trade deficit jumps to record high in June on strong import growth

Reuters2021-08-05

(Adds more details)

WASHINGTON, Aug 5(Reuters) - The U.S. trade deficit surged to a record high in June as efforts by business to rebuild inventories to meet robust consumer spending drew in more imports.

The Commerce Department said on Thursday that the trade gap increased 6.7% to $75.7 billion in June, an all-time high.

Economists polled by Reuters had forecast a $74.1 billion deficit. Goods imports rose 1.8% to $239.1 billion, also a record high. Exports of goods gained 0.2% to $145.9 billion in June, an all-time high.

The government reported last week that consumer spending picked up in the second quarter, with outlays on goods rising solidly, even as demand is rotating back to services because of vaccinations against COVID-19.

The double-digit growth in consumer spending last quarter helped to left the level of gross domestic product above its peak in the fourth of 2019. Business inventories were depleted at a rapid clip in the second quarter.

The U.S. economy has rebounded more quickly from the pandemic than its main rivals because of massive fiscal stimulus, low interest rates and a high level of coronavirus vaccinations. That is putting pressure on the trade deficit, which has subtracted from GDP for four straight quarters.

(Reporting By Lucia Mutikani; Editing by Kevin Liffey)

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Comments

  • robot1234
    2021-08-06
    robot1234
    A large part of the trade deficits is due to US engaging in massive printing of USD and near zero interest rates. Donald Trump printed USD6.7 trillion dollars, increasing the deficit by 33% under his MAGA policy. Now Joe Biden is going to print 6 trillion dollars under his B3W policy. However, such easy monetary policy has resulted not just in hugh trade deficit but an upward pressure on inflation and all time high in the US equities market. The consumer price index in June was 5.4% YOY, the largest advance since November 1991. Retail investors should err on the safe side with increased market volatility and potential stock market correction.
  • Aoyjai
    2021-08-06
    Aoyjai
    No problem, just print more money.
  • peterob1
    2021-08-05
    peterob1
    Goog to know
  • CokePepsi
    2021-08-05
    CokePepsi
    Good info
  • NoHurry
    2021-08-05
    NoHurry
    But now delta variant strikes :(
  • JFK23
    2021-08-05
    JFK23
    Expect correction coming.Not buy for the time being
    • koolgal: 
      Thanks for sharing. ??
    • Takiho: 
      WhEn is the question, if another stimulUs, will it goes up?
    • Boink: 
      Ok
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