BUSINESS

US trade gap widens in September as imports rise more than exports

Agence France-Presse · Nov 7, 2023, 10:04 PM

WASHINGTON, DC - NOVEMBER 03: U.S. Treasury Secretary Janet Yellen delivers opening remarks at a meeting with leaders during the Americas Partnership for Economic Prosperity Leaders Summit at the Treasury Department on November 03, 2023 in Washington, DC. (Photo by Kevin Dietsch / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

The US trade deficit expanded in September on the back of a larger rise in imports than exports, according to government data released Tuesday.

The overall trade gap of the world's biggest economy broadened more than expected to $61.5 billion, up from a revised $58.7 billion in August, said the Commerce Department.

This came as imports picked up 2.7 percent to $322.7 billion, while exports grew 2.2 percent to $261.1 billion.

US trade has been bolstered by consumer spending as households dipped into pandemic-era savings but higher interest rates, aimed at lowering inflation, have been expected to weaken demand.

As growth slows in the United States' major trading partners following monetary policy tightening, exports could take a hit as well.

The September deficit increase reflected a widening of the goods deficit, and a drop in the services surplus, said the Commerce Department in a statement.

The US goods deficit with China, a point of focus during the trade war between both countries, grew to $21.4 billion in September, data showed.