US Trade Deficit Widens to $88.6 Billion in July as Jobless Claims Edge Higher

The US trade deficit widened to $88.6 billion in July, the latest sign of persistent import demand outpacing exports. The figure represents a notable gap and adds to ongoing scrutiny of America's external balance as economic conditions evolve.

Weekly initial jobless claims came in at 206,000 for the week ending August 29, up 2,000 from a revised 204,000 the prior week and slightly above the consensus estimate of 205,000. Continuing claims for the week ending August 22 rose by 8,000 to 1,779,000, pointing to a modest softening in the pace at which laid-off workers are finding new jobs even as the labor market remains broadly resilient.

The S&P Global US Composite PMI for August held steady at 56.0, matching both the prior month's reading and nearly meeting the 56.1 estimate, signaling continued expansion in business activity. Canada's international merchandise trade surplus narrowed sharply in July to 0.77 billion Canadian dollars, well below the 3.18 billion estimate and down from a revised 4.20 billion in June, reflecting a significant pullback in Canada's trade position.