The US trade gap jumped nearly 10 per cent in August to a record $38.46 billion, as exports fell for the first time in six months and demand for foreign consumer goods pushed imports to their highest level since March 2001, the government said today.
The trade gap exceeded the average forecast of $35.58 billion made by analysts surveyed before the US Commerce Department report.
Excluding the US surplus for services trade, the deficit for goods was $42.27 billion, also a record.
The sharp increase in the deficit renewed analyst concerns that it could eventually trigger a sharp drop in the dollar, although there was little initial reaction in currency markets as traders focused on stocks instead.
"It looks like funding the current account may become a bigger issue," Mr Eric Nickerson, chief currency strategist at Bank of America in New York.
Analysts worry that the ballooning current account deficit, which is the broadest measure of trade because it also includes investment flows, is at risk of a disorderly correction which could trigger a slide in the value of the dollar.
However, US officials have repeatedly said they are not worried about the current account deficit, calling it a sign of the United States' economic strength and its attractiveness to foreign investors.
US imports increased a healthy 2 per cent in August to $120.31 billion. Imports of consumer goods such as pharmaceuticals, televisions, furniture and household appliances were a record $26.66 billion. Imports of services were also a record at $20.06 billion.
US exports fell to $81.86 billion, down 1.3 per cent from July, as the major export categories of capital goods, foods, feeds and beverage, autos and auto parts and consumer goods all showed declines.