US goods trade deficit widens sharply in August

The US trade ​deficit in goods widened ​sharply in August amid ‌a ​surge in imports, suggesting that trade could remain a drag economic growth ‌in the third quarter. The goods trade shortfall increased 11.5% to $132.6 billion last month, the Commerce Department's Census Bureau said on Wednesday. Economists ‌polled by Reuters had forecast the goods deficit at $115.0 billion.

Goods ‌imports soared $17.4 billion, or 5.5%, to $336.1 billion. They were driven by a 16.6% jump in imports of industrial supplies, which include petroleum. ⁠Capital goods imports ​rose 4.0% ⁠amid an AI infrastructure buildout. Food imports increased 5.5%. But consumer ⁠goods imports fell 1.6%. Exports of goods advanced $3.7 billion, or 1.9%, ​to $203.4 billion.Exports of industrial supplies rose 8.3%. But shipments of consumer ⁠goods dropped 10.5%, while those of motor vehicles and parts decreased ⁠6.9%. ​Food exports declined 5.6%.

Trade has subtracted from gross domestic product for three straight quarters. Some of the ⁠hit from the trade deficit on GDP growth could be blunted ⁠by rising ⁠inventories. The Census report showed wholesale inventories increased 0.7% in August while stocks at retailers climbed ‌0.3%. (Reporting ‌By Lucia Mutikani; Editing by ​Chizu Nomiyama)