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The US trade deficit widened to a new high in August, as US consumers continued to show strong appetites for imported goods such as pharmaceuticals and toys, although supply chain disruptions continued to restrict world trade.
The Commerce Department said on Tuesday that the trade gap in goods and services widened to $ 73.3 billion in August, from $ 70.3 billion in July, as rising imports outpaced growth in exports. August’s deficit was slightly larger than the previous record of $ 73.2 billion in June.
Imports rose 1.4% in August to $ 287 billion, also a record high, reflecting higher shipments of consumer goods, as well as industrial supplies by corporate customers.
As many economies around the world continued to break out of restrictions linked to the pandemic, exports also reached $ 213.7 billion, up 0.5% from July.
Economists polled by the Wall Street Journal had forecast a trade deficit of $ 70.7 billion for August.
Although shipments to and from the United States increased overall in August, problems with global supply chains continued. While a severe semiconductor shortage forced automakers to cut production, exports of vehicles and parts fell 8%, while imports also fell 5.2%.
Citing the chip shortage and historically low inventory, General Motors Co.
said last week that its US auto sales fell about 33% in the third quarter.
Representatives of the transportation industry say congestion in ports and labor shortages continue to create bottlenecks in cross-border trade.
“We are seeing unprecedented disruption, delays and global shortages of essential goods, including electronics, food, fuel and medical supplies,” wrote the International Chamber of Shipping and others. transport industry groups in a joint letter to the United Nations General Assembly last week. “Consumer demand is increasing and delays are expected to worsen before Christmas and continue until 2022.”
After a brief decline in early summer, imports into the United States rebounded in August, alongside stronger consumer demand. Personal spending on goods and services rose 0.8% in August after falling 0.1% in July, the Commerce Department reported on Friday. The increase came as personal income edged up 0.2% in August, reflecting wage gains and the federal government’s distribution of child tax credits.
—Anthony DeBarros contributed to this article.
Satellite images show the scale of the backlog at California ports, as lingering supply chain problems now threaten the holiday shopping season. Jennifer Smith of the WSJ explains what is causing ship and cargo blockages. Photo: Planet Labs Inc
Write to Yuka Hayashi at [email protected]
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