U.S. goods and services trade deficit widened 24.4% MoM to $88.6bn in July, the
largest since early 2025, the Commerce Department said Thursday; economists'
median forecast was $90.2bn. Imports rose 2.8% and exports fell 2.1%. Capital
goods imports (including computers and accessories, semiconductors and telecom
equipment, excluding autos) jumped 11.4%, the largest increase since 1993,
driven by a surge in technology imports amid increased AI-related investment.
The report also said recent swings in the deficit have reflected higher global
demand for U.S. petroleum products amid the Iran war and firms' efforts to ease
supply-chain disruptions.