Imports from China widen US trade gap in August

Thursday, 14 October 2010 22:52 -     - {{hitsCtrl.values.hits}}

WASHINGTON,  (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.