US trade deficit unexpectedly widens in July

America's trade deficit in goods with the rest of the world widened last month, partly as the boost to exports from Chinese buyers trying to front-run their government's tariffs on US soybeans lapsed.

According to the Department of Commerce, the country's shortfall in its trade on goods increased by 6.3% month-on-month to reach $72.2bn.

Economists had penciled-in a reading of -$66.7bn.

Exports declined by 1.3% month-on-month to reach $140.0bn, led by those of food, feeds & beverage, although decreases were also seen in overseas sales of capital and consumer goods and other goods.

On the import side of the equation meanwhile, purchases of foreign goods rose by 0.9% on the month, hitting $212.2bn.

Following the data, Pooja Sriram at Barclays Research said: "Altogether, we expect the trade deficit to continue to widen in the coming months as some of the transitory factors supporting exports fade away and fiscal stimulus-led imports growth continues."