Stories
US Goods-Trade Deficit Widens Unexpectedly to Largest Since 2025
M
Moneycontrol•30-09-2026, 21:29
US Goods-Trade Deficit Widens Unexpectedly to Largest Since 2025
- •The US merchandise-trade deficit unexpectedly widened in August to $132.6 billion, an 11.5% increase from the prior month, marking the widest gap since early 2025.
- •The widening deficit was primarily driven by a 5.5% increase in merchandise imports, notably a 16.6% surge in industrial supplies imports, including petroleum products.
- •US exports of goods also climbed by 1.9%, with a pickup in outbound shipments of industrial supplies.
- •The trade deficit has fluctuated due to factors like the Iran war boosting demand for US petroleum products, firms stockpiling goods to mitigate supply-chain disruptions, and soaring imports of AI-related equipment.
- •This trade data, along with retail and wholesale inventory figures, will inform the government's estimate for third-quarter gross domestic product, with net exports previously projected to reduce GDP growth.
Key Questions Answered
The US goods-trade deficit widened by 11.5% to $132.6 billion in August, largely driven by a jump in the value of industrial supplies imports like petroleum products.
Prior to the August figures, the Federal Reserve Bank of Atlanta’s GDPNow model estimated that net exports would reduce third-quarter economic growth by 1.37 percentage points.
More complete August trade figures that include the balance on the services account and inflation-adjusted data are scheduled for release on October 6.
