U.S. Trade Deficit Expands

The U.S. trade deficit of goods increased in August while imports also rose. Businesses struggled to replenish inventories sapped by supply chain issues, further implying that trade could slow economic growth. The deficit rose 0.9% to $87.6 billion last month. This is the 4th straight quarter that trade has cut into the country’s GDP. As domestic demand remains strong, imports could continue to surge, leading to further trade deficits.