On Thursday, a report released by the United States Department of Commerce showed that the U.S. trade deficit suddenly widened in June. The report showed that U.S. exports of goods and services decreased by 2.3 percent in June, while U.S. imports decreased by 0.8 percent, causing the trade deficit to increase by 4.4 percent since May — putting the trade deficit at its highest level since October 2008.
“Exports remain a driving force in our economy. Although numbers in June were lower than we’d hoped, exports have grown at a steady pace for the first half of this year, posting 15.8 percent growth over last year,” read a statement from Acting U.S. Commerce Secretary Rebecca Blank.
“We are on pace to meet the President’s National Export Initiative of doubling exports by 2015. While we are at a fragile time in the world economy, the Administration will continue to innovate to help our businesses compete globally, stabilize the economy, strengthen the middle class and accelerate hiring in communities and towns across the nation.”
According to a Bloomberg article, the trade deficit may not be as dire as it sounds. Global demand for American-made goods is expected to remain high, aided, at least in part, by the weaker dollar.
“Sluggish U.S. demand growth has this year has restrained imports,” Mike Englund, chief economist at Action Economics LLC in Boulder, Co., told the news service before the report. “The export trajectory remains respectable.”