US Trade Deficit Widens In August

importsCranes load containers onto a ship at the container wharf in Tokyo port on December 17, 2014. AFP PHOTO / TOSHIFUMI KITAMURA

US trade deficit widened in August, as higher imports of capital goods and record purchases of services from oversea outweighs exports.

The deficit grew by 3 percent to $40.7 billion from $39.5 billion, the Commerce Department reported on Wednesday. Import rose 1.2 percent, while exports increased 0.8 percent.

Services imports climbed $1.5 billion to $43 billion, with most of the increase coming from charges for use of intellectual property from rights fees to broadcast the Olympic Games.

Experts have said the improvement in global markets and the dissipating effect of the strong dollar are likely to boost exports in the world largest economy.

“The trade deficit looks like it’ll provide a pretty big boost to the third quarter,” said Sam Coffin, an economist at UBS Securities LLC in New York, who projected the gap would widen. “The general story is improving exports.”

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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