U.S. Goods Trade Deficit Hits $132.6 Billion in August

The United States Census Bureau reported Wednesday that the U.S. goods trade deficit increased 11.5% to $132.6 billion in August. This figure significantly exceeded economist forecasts of $115.0 billion.

Imports drove the widening gap, rising 5.5% to $336.1 billion. This growth was fueled by a 16.6% jump in industrial supplies and a 4.0% increase in capital goods, which the agency linked to an artificial intelligence infrastructure boom. Conversely, goods exports rose only 1.9% to $203.4 billion, hampered by a 10.5% drop in consumer goods shipments and a 5.6% decline in food exports.

Trade has subtracted from the U.S. gross domestic product for three consecutive quarters. While this trend suggests trade may continue to hinder economic growth in the third quarter, rising wholesale and retail inventories may partially blunt the overall impact.