Trade deficit widens sharply to $46.3 billion

The August up tick in imports relative exports goods reflects an up tick in consumption. The 2009-present yellow box continues to reflect a liquidity induced recovery that is bouncing along the bottom.

Imports to Exports Ratio (Census Basis):


The decline in net exports will place downward pressure on next quarter’s GDP (America's domestic economic output).

Net Exports (Census Basis) As A % GDP:

The U.S. trade deficit widened sharply in August, reflecting a surge in imports of consumer products as businesses restocked their shelves in hopes of a pickup in consumer demand.

The politically sensitive deficit with China climbed to an all-time high, a development that was certain to increase pressure on the Obama administration to take a tougher line on trade issues including China's tightly controlled currency.

Source: finance.yahoo.com