The U.S. trade deficit surpassed analyst expectations in August, rising 3 percent from July to $40.73 billion as higher imports offset a gain in exports.
The U.S. Commerce Department reported Wednesday the nation’s trade deficit totaled $40.73 billion in August, inching up 3 percent from July as higher imports offset a gain in exports.
Economists surveyed by The Wall Street Journal and Bloomberg projected a $39.2 billion deficit for August, while economists surveyed by Reuters projected a $39.3 billion deficit for the month.
U.S. exports in August reached $187.9 billion, a $1.5 billion increase from July.
Meanwhile, U.S. imports totaled $228.6 billion, a $2.6 billion jump from July.
Of the $2.6 billion increase in imports, $1.2 billion was generated from charges for the use of intellectual property, reflecting payments for the rights to broadcast the 2016 Summer Olympic Games.
During the month, surpluses, in billions of dollars, were recorded with Hong Kong ($2.4), South and Central America ($1.7), Saudi Arabia ($0.8), Singapore ($0.7), the United Kingdom ($0.4) and Brazil ($0.2).
However, deficits, in billions of dollars, were recorded with China ($29.2), the European Union ($12.3), Japan ($5.7), Germany ($5.3), Mexico ($5.2), South Korea ($2.5), Italy ($2.4), France ($2.0), India ($1.9), Taiwan ($1.5), Canada ($1.1) and the Organization of the Petroleum Exporting Countries ($0.3).
Overall, for the first eight months of 2016, the U.S. trade deficit was 1.3 percent lower than the corresponding period in 2015.
U.S. trade deficit expands in August
