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.
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.