Trade Deficit Unexpectedly Widens

The US trade deficit unexpectedly widened this month according to a Commerce Department report, spiking 5.7% to $62.32 billion on increased US demand for foreign cars.

Exports jumped 2% to $151.4 billion, but imports surged unexpectedly by 3.1% to $213.7 billion. The drastic increase in imports left most economists perplexed, since a tanking dollar and slowing consumer spending should have meant slower growth. Nevertheless, the gap isn’t expected to continue widening. Bloomberg:

The increase in imports will not hold up,” said Jay Bryson, global economist at Wachovia Corp. in Charlotte, North Carolina. “Growth is so weak we are not going to be buying as much. We’ll see the trade deficit improving. Exports seem to be holding up well, reflecting a weaker dollar and strong growth in the rest of the world.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.