US trade deficit widens unexpectedly in August, sales of soybeans and oil fall

America's shortfall in foreign trade widened more than expected last month amid a decline in exports, chiefly of oil and other petroleum products.

According to the US Department of Commerce, the foreign trade balance widened by 6.4% or $3.2bn to $53.2bn.

Economists had anticipated a reading of -$50.7bn.

Exports of goods and services fell by 0.8% month-on-month to $209.4bn, led by a $1.9bn drop in overseas sales of goods to $138.9bn, with those of crude oil falling by $0.9bn and those of petroleum products retreating by $0.7bn.

Food, feeds and beverage exports also dropped sharply, by $1.2bn, soybean exports accounted for the bulk of the decline, with drop of $1.0bn following a pre-tariff surge at the start of summer.

Imports of goods and services on the other hand increased by 0.6% or $1.5bn versus July to reach $262.7bn, with purchases of automobiles and parts up by $1.0bn and those of consumer godos by $0.9bn.

"Overall exports are on track to fall by around 3% annualised in the third quarter, while imports look to have risen by close to 8% annualised," said Michael Pearce at Capital Economics.

That all but confirms net trade was a substantial drag on GDP growth in the third quarter, which we estimate was 3.0% annualised."