U.S. trade deficit in goods climbs 3.5% in June and hits another record high

The U.S. trade deficit in goods rose 3.5% in June to a record $91.2 billion, reflecting a strong appetite among Americans for imports as the U.S. economy recovers from the coronavirus.

The trade gap in goods widened from a revised $88.2 billion in June, the government said Wednesday.

Goods exports edged up 0.3% to $236.7 billion.

Imports climbed 4.7% to $145.5 billion.

The U.S. has run chronic deficits for decades and they are generally viewed as negative for the economy. A trade deficit subtracts from gross domestic product.

The record surge in deficits this year largely stems from the U.S. recovering faster than the rest of the world. Americans can afford to buy more imports, but people in other countries have less ability to do so as their economies struggle.

Read: ‘Delta’ chill in the air? A booming economy faces new uncertainty

Rising oil prices have been another contributor.

The full report on the June trade balance will be released next week and will include services as well. The U.S. has run a small trade surplus for years.

The government on Wednesday also said wholesale inventories rose 0.8% in June while retail inventories increased 0.3%, based on an “advanced” looked at early data.

Companies have had trouble building inventories or keeping products in stock because of strong sales and an inability to procure enough supplies and labor to keep production going at full tilt.

Read: Durable-goods orders rise again even as businesses battle major shortages

The U.S. stock market
was set to open higher in Wednesday. The trade report usually has little impact on investors.

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