US trade deficit widens to $78.3 billion in July
The US trade deficit grew to $78.3 billion in July, up 32.5% from June and bigger than experts expected.
This happened mostly because Americans bought more imported goods—especially computers and tech equipment—than before.
The growing gap could make it tougher for the economy to grow this quarter, since the US is importing more than it's exporting.
Imports surge, exports barely move
Imports shot up by nearly 7%, hitting $283.3 billion, with a record spend on capital goods like computers and telecommunications equipment. The trade gap with China also widened.
On the flip side, exports barely budged at $280.5 billion; while sales of computer accessories and aircraft hit records, money from travel services dropped as an immigration crackdown slowed tourism.
Still, total service exports reached an all-time high thanks to gains in other areas balancing out the dip in travel income.