September 7, 2023 | Investopaper
New government data released by the Commerce Department reveals that the U.S. trade deficit grew in July due to a notable increase in imports. According to the report, the trade deficit reached $65 billion in July, up from a revised $63.7 billion in June. This figure, however, remains below the second-quarter average, indicating ongoing economic complexity.
The latest data shows imports rising by 1.7 percent, reaching $316.7 billion, while exports increased by 1.6 percent, totaling $251.7 billion. Key imports included semiconductors, mobile phones, and pharmaceutical preparation consumables.
Despite concerns about a potential economic slowdown, robust consumer spending has been a driving force for U.S. businesses. Nevertheless, the Federal Reserve’s recent aggressive interest rate hikes, aimed at tackling inflation and managing demand, are expected to impact the economy.
July also witnessed notable growth in exports of vehicles, spare parts, engines, and industrial supplies, reflecting fluctuations in the goods market. Additionally, the U.S. trade deficit with China increased by $1.2 billion, reaching $24 billion in July.