U.S. Exports Down as Trade Gap Balloons

U.S. exports were down in August and imports from China rose, spurring the largest expansion of America’s trade deficit in five months.

According data released on Tuesday by the Commerce Department, the U.S. economy is on edge due to a strong dollar and reduced demand in foreign markets.  This in turn could slow Federal Reserve plans to hike interest rates.

The trade deficit ballooned by 15.6 percent to $48.3 billion in August, according to data that is adjusted for seasonal factors.

Economists noted that the size of the gap stands well above the average levels seen in recent years.  Some believe this puts greater pressure on U.S. consumers to boost domestic GDP by increasing their own spending at home.

Overall exports fell 2 percent to their lowest level since October 2012. Exports to Mexico fell by $1.5 billion in August and the European Union bought $500 million less from America than it did in July, according to data on bilateral trade which is not seasonally adjusted.

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