US Trade Deficit Soars as Capital Goods Imports Hit Record High

The U.S. trade deficit widened sharply in July, climbing by more than 30 percent as imports of capital goods surged to record levels, signaling resilient domestic demand and firmer business investment.

The overall gap in goods and services rose by 32.5 percent to $78.3 billion, the Commerce Department reported on Sept. 4. Imports increased by 5.9 percent to $358.8 billion, while exports edged up just 0.3 percent to $280.5 billion, leaving the goods deficit 21 percent higher than in June at $103.9 billion.