US goods trade deficit hits $118.8B, up 17.2% in July
Business
The US goods trade deficit shot up by 17.2% in July, hitting $118.8 billion, its highest since early last year.
Imports saw a big boost, especially in capital equipment, while exports actually dropped by 2.9%.
This gap is much wider than what experts expected for the month.
Iran conflict, US stockpiling widen deficit
A few things are shaking up the trade balance: global demand for American petroleum has spiked due to ongoing conflict in Iran, and US companies are stocking up on inventory to avoid supply chain hiccups.
All this led to a bigger-than-usual trade gap this summer.