The U.S. trade deficit widened in August as exports fell to the lowest level in six months, a worrisome sign that a slowing global economy is cutting into demand for U.S. goods.
The deficit increased to $44.2 billion in August, the biggest gap since May and a 4.1 percent increase from July, the Commerce Department said Thursday.
Exports dropped 1 percent to $181.3 billion. Demand for American-made cars and farm goods declined. Imports edged down a slight 0.1 percent to $225.5 billion as purchases of foreign-made autos, aircraft and heavy machinery fell. The cost of oil imports rose sharply.
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The article understates the importantance of American monetary policy which is undermining the value of the currency, resulting in higher prices for oil imports, which are a major part of the increase in the trade deficit. A policy of encouraging domestic energy production, and a “sound dollar” policy, would resolve the problem.