The U.S. trade deficit in goods rose 3.5% in June to a record $91.2 billion, reflecting a strong appetite among Americans for imports as the U.S. economy recovers from the coronavirus.

Goods imports edged up 0.3% to $145.6 billion.

Yet imports climbed a much faster 4.7% to $236.7 billion. That’s also a record high.

The trade gap in goods was revised slightly to $88.2 billion in May, the government said Wednesday.

The U.S. has run trade deficits for decades. A trade deficit subtracts from gross domestic product, the official scorecard for the economy.

The record surge in deficits this year largely stems from the U.S. recovering faster than most countries from the pandemic. Americans can afford to buy more imports, but people in other countries have less ability to do so as their economies struggle. Rising oil prices have been another contributor.

Read: ‘Delta’ chill in the air? A booming economy faces new uncertainty

What’s also played a role lately is higher import prices. They’ve risen 11% over the past year, adding to upward pressure on U.S. inflation.

The full report on the June trade balance will be released next week and will include services as well.

The government on Wednesday also said wholesale inventories rose 0.8% in June while retail inventories increased 0.3%, based on an “advanced” looked at early data.

Companies have had trouble building inventories or keeping products in stock because of strong sales and an inability to procure enough supplies and labor to keep production going at full tilt as the economy recovers.

Read: Durable-goods orders rise again even as businesses battle major shortages

The U.S. stock market
DJIA,
-0.24%

was set to open higher in Wednesday. The trade report usually has little impact on investors.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Latest News