The U.S. trade gap widened in July as imports from China and of crude oil both hit record highs, while jobless claims rose by 3,000 to 422,000 last week, the third consecutive increase.
The U.S. deficit in international trade of goods and services rose 0.7% to $40.32 billion from a revised $40.04 billion in June, the Commerce Department reported Thursday. Economists had expected a deficit of $41 billion.
Imports and exports both increased but the dollar amount of imports was larger than the value of exports, thus widening the monthly trade gap. Imported goods and services rose 1.6% to $126.5 billion, the second-highest level on record, from June. Exports climbed 2% to $86.1 billion, the strongest showing since May 2001.
America's politically sensitive trade deficit with China widened by 13.5% during the month to a record $11.3 billion. Imports from the country totaled $13.4 billion, also a high.
