US Goods Trade Deficit Widens to $132.6 Billion in August, Surpassing Expectations

The US advance international goods trade deficit widened significantly to $132.6 billion in August, exceeding market consensus expectations of -$114.8 billion to -$115.00 billion. The deficit expanded from July's revised level of -$118.9 billion. The deterioration was fueled by a $17.4 billion surge in goods imports to $336.1 billion, which substantially outpaced a $3.7 billion increase in goods exports to $203.4 billion. Concurrently, wholesale inventories rose 0.7% month-over-month and retail inventories climbed 0.3%. The widening trade deficit is poised to pose a drag on third-quarter gross domestic product estimates.