U.S. Trade Deficit Swells By 5.7% To $62.2 Billion In July

September 11, 2008 11:16 a.m. EST

Washington, D.C. (AHN) - The trade deficit for the month of July grew to the largest gap in 16 months up by 5.7 percent to $62.2 billion from June's revised $58.84 billion.

The wider trade deficit was led by higher crude imports by volumes and a decline in the demand for exported goods and services.

The market analysts on Wall Street were expecting the trade gap to widen only to $58.6 billion.

The report showed that the imports of the country in the month of July surged by 3.9 percent to a record $230.3 billion from June's $221.62 billion.

While, exports in the month of July moved up at a slower pace as it added 3.3 percent to $168.15 billion, from June $162.79 billion, according to the report.

The U.S. trade deficit of non-petroleum goods declined by 9.8 percent to $29.6 billion, which is the lowest in six years, the department said.

Crude imports increased by 11 percent to 342.02 million barrels in July, from June's 297.53 million; while price per barrel gained by $7.53 to a record $124.66, from $117.13 in June.

The trade deficit with China grew to $24.88 billion in July, from June's $21.43 billion, followed by Canada to $8.34 billion, the European Union to $8.67 billion and Japan to $6.33 billion.

But the shortfall with Mexico narrowed to $5.46 billion in July from $5.69 billion in June.