U.S. Trade Deficit Hits Two-Year High of $78.8 Billion in July

Sep 4, 2024, 12:41 PM

The U.S. trade deficit widened to a two-year high in July, reaching $78.8 billion, up from a revised $73.0 billion in June. This increase was driven by a 2.1% rise in imports, including a 1.9% increase in real goods imports, which were fueled by industrial, capital, and consumer goods. Exports saw a modest increase of 0.5%, but real goods exports fell by 1.2%, weighed down by autos and consumer goods. The surge in imports partly reflects efforts by companies to ensure adequate supply ahead of a potential dockworkers' strike. The July trade deficit was slightly better than the expected $79.0 billion. U.S. July exports were $266.6 billion, while imports were $345.4 billion.