Imports from China widen U.S. trade gap in August

Published 10/14/2010, 08:35 AM
Updated 10/14/2010, 08:40 AM

WASHINGTON, Oct 14 (Reuters) - Record imports from China helped widened the U.S. trade gap more than expected in August, a Commerce Department report showed on Thursday, suggesting countries were stuck in old patterns of trade despite pledges to put global growth on a more sustainable path.

The monthly trade gap jumped 8.8 percent to $46.4 billion, compared to a consensus estimate of $44.0 billion from Wall Street analysts surveyed before the report. The Commerce Department revised its estimate of the July trade gap down slightly to $42.6 billion.

U.S. imports from China, which U.S. officials accuse of undervaluing its currency to gain an unfair trade advantage, grew 6.1 percent in August to a record $35.3 billion. The U.S. trade deficit with China also set a new record of $28.0 billion, as U.S. exports to the Asian giant were essentially flat at $7.3 billion. The previous record trade deficit with China was $27.9 billion in October 2008. (Reporting by Doug Palmer; Editing by James Dalgleish)

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