US trade deficit jumps in August

The US trade deficit surged in August, as a strong dollar kept exports to three-year low, data released on Tuesday showed.

According to figures published by the Commerce Department, trade deficit in the world’s largest economy jumped 16% month-on-month to $48.3bn in August, higher than the $47.1bn analysts had expected.

Exports declined 2% to $185.1bn, hitting their lowest level in three years, as they were driven lower by a drop in overseas sales of US-produced petroleum and other industrial supplies.

Meanwhile, imports rose 1.2% to $233.4bn, even though US demand for foreign oil hit an 11-year low, as import of mobile phones and other consumer electronics jumped 30% to $9.01bn.

As a result, the US trade deficit with China, the world’s largest producer of mobile phones, jumped 14.4% to $32.9bn, while the deficit with the European Union rose 17% to $14.5bn.