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U.S. trade gap widened in June

The U.S. trade deficit expanded in June at the fastest rate since November 2016, underpinned by a stronger dollar and buoyant economic growth. The trade deficit in goods and services increased 7.3% in June from the previous month to a seasonally adjusted $46.35 billion, the Commerce Department said Friday. Exports fell 0.7% from May, while imports into the U.S. increased 0.6% on the month. The data confirmed economists’ expectations that a narrowing trade deficit earlier this year was likely to reverse, despite a renewed focus on trade policy from President Trump. Economists surveyed by The Wall Street Journal had expected an even wider gap of $46.6 billion in June. “We look for the trade deficit to widen modestly ahead as export growth slows on the heels of cooler global momentum while imports remain well-supported by fiscal stimulus and solid domestic demand,” Oxford Economics’ Gregory Daco and Oren Klachkin wrote in a note to clients Friday.

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Wall Street Journal