The US trade deficit increased by 9.5% to a five-month high of $50.1bn in July, the Commerce Department said. The price of imported crude oil averaged $64.63 per barrel in July, the highest since December 2014 and up from $62.42 in June. Exports rose at an annual rate of 5.7%, while imports fell 0.2%. The government's implementation of a $1.5tn tax cut earlier this year could increase the trade deficit further by boosting consumer and business spending, which in turn will increase imports, according to economists including John Ryding of RDQ Economics.
The US trade deficit increased by 9.5% to a five-month high of $50.1bn in July, the Commerce Department said. Exports rose at an annual rate of 5.7%, while imports fell 0.2%. The government's implementation of a $1.5tn tax cut earlier this year could increase the trade deficit further by boosting consumer and business spending, which in turn will increase imports, according to economists including John Ryding of RDQ Economics.