With the value of imports rising by more than the value of exports, the Commerce Department released a report on Friday showing the U.S. trade deficit widened more than expected in the month of September.
The report said the trade deficit widened to $54.0 billion in September from a revised $53.3 billion in August. Economists had expected the trade deficit to widen to $53.6 billion.
The wider than expected trade deficit came as the value of imports jumped by $3.8 billion or 1.5 percent to $266.6 billion in September from $262.8 billion in August.
Notable increases in imports of capital goods and consumer goods more than offset a drop in imports of trucks, buses, and special purpose vehicles.
Meanwhile, the value of exports also surged up by $3.1 billion or 1.5 percent to $212.6 billion in September from $209.4 billion in August.
Exports of industrial supplies and materials and civilian aircraft showed significant increases, while exports of soybeans continued to decrease amid Chinese tariffs.
“Export growth will remain muted over the next few months, reflecting the dollar’s rebound and the drop off in global economic growth,” said Paul Ashworth, Chief U.S. Economist at Capital Economics.
The Commerce Department also said the goods deficit widened to $77.2 billion in September from $7.6 billion in August, while the services surplus edged down to $23.2 billion from $23.3 billion.