With the value of imports spiking, the Commerce Department released a report on Thursday showing the U.S. trade deficit widened more than expected in the month of July.
The Commerce Department said the trade deficit shot up to $78.3 billion in July from a revised $59.6 billion in June.
The wider trade deficit came as the value of imports surged by 5.9 percent to $358.8 billion in July after plunging by 3.6 percent to $338.7 billion in June.
The report showed a sharp increase in imports of industrial supplies and materials, particularly nonmonetary gold, as well as a jump in imports of capital goods.
Meanwhile, the Commerce Department said the value of exports rose by 0.3 percent to $280.5 billion in July after slipping by 0.3 percent to $279.7 billion in June.
Modest increases in exports of capital goods and automotive vehicles, parts and engines were partly offset by dips in inventories of industrial supplies and materials and other goods.
The report also said the goods deficit widened to $103.9 billion in July from $85.7 billion in June, while the services surplus narrowed to $25.6 billion in July from $26.6 billion in June.