The US trade deficit in July expanded to its largest since mid-2022, according to government data released Wednesday, as imports rose more quickly than exports.
Imports jumped 2.1 percent to $345.4 billion, boosted by capital goods like computer accessories and industrial supplies.
Exports, meanwhile, edged up 0.5 percent to $266.6 billion.
Among segments, exports of semiconductors rose but auto shipments and that of consumer goods fell as well.
US consumer demand has held up in the face of high interest rates, even as the central bank hiked the benchmark lending rate in recent years to counter soaring inflation.
Households have continued spending, dipping into savings, supported by a robust jobs market.
A reduction in interest rates, widely expected later this month, could bring the world’s biggest economy a further boost.
Exports have had a harder time with global demand weakening and with a strong dollar, analysts earlier noted.
In July, the US goods deficit with China increased by $4.9 billion to $27.2 billion, as exports fell and imports picked up.
