Article written by Tyler Durden
In data released today by Bloomberg, the US Trade Balance (the net sum of a country’s exports and imports of goods without taking into account all financial transfers, investments and other financial components), fell to its biggest deficit since 2006, at $67.1 billion in August (!!!).
This was much higher than the $66.2 expected, as total imports increased by 3.2% up to $239 billion, while exports comparatively only rose 2.2%, up to $171.9 billion from the prior month.
The increase in imports suggests that domestic firms responded to high local demand without high inventories. This would make sense as the majority of imports over the past 6 months have been PPE and medical goods.
However, to everyones surprise, the trade balance between the US and China improved marginally in the month of August.
Here comes more pressure on the US dollar…
Works Cited:
https://www.zerohedge.com/markets/covid-lockdowns-trump-trade-war-us-deficit-soars-14-year-high