Trade Deficit Widened to a Record-High in August
New York, NY, October 6, 2021--The U.S. trade deficit widened to a record in August as American consumers continued to show a strong appetite for imported goods such as pharmaceutical products, toys and clothing, reports the Wall Street Journal.
“The Commerce Department on Tuesday said the trade gap in goods and services expanded to $73.3 billion in August from $70.3 billion in July as the Delta variant of Covid-19 and supply constraints weighed on global trade.
“The August deficit was slightly larger than the prior 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 business customers.
“As many economies around the world continued to emerge from pandemic-related restrictions, exports also rose to $213.7 billion, up 0.5% from July.
“Economists say the pace of the increase in imports is likely to slow in the coming months as U.S. consumer demand cools down.”