WASHINGTON — A decline in exports and a sharp rise in imports pushed the U.S. trade deficit in June to its widest point since October 2008, raising new concerns about the weakening economic recovery.
The $49.9 billion gap worries economists, who fear it means the U.S. economy grew at half the rate in the April-to-June quarter that was first estimated by the government last month.
The trade deficit jumped 18.8 percent in June compared with May, the Commerce Department reported Wednesday.
While the rise in imports suggests the U.S. economy is growing, the drop in exports is a troubling sign for U.S. manufacturers who rely on overseas markets.
U.S. exports slipped 1.3 percent to $150.5 billion. Sales of American farm products, computers and telecommunications equipment declined. Imports rose 3 percent to $200.3 billion. The surge in consumer imports reflected higher shipments of a wide variety of goods, including cellphones, household appliances, televisions and clothing.
Nigel Gault, an economist at IHS Global Insight, said the June deficit means the government will trim its estimate of overall economic growth from an already subpar 2.4 percent to 1.2 percent when it releases a revised estimate Aug. 27.
He said that placed the economy “on even shakier ground” and underscored why the Federal Reserve announced Tuesday that it would supply additional support for economic growth.
“The slowing in exports will only fan fears of a faltering U.S. recovery,” said Sal Guatieri, a BMO Capital Markets economist.
Economists had expected the deficit to widen this year as an improving domestic economy lifted U.S. demand for foreign consumer goods and industrial products, but they had hoped that some of the drag on growth would be offset by a solid rebound in U.S. exports.
American manufacturers have enjoyed growing demand for their products in Asia. But they have faced weakness in Europe, where the economic rebound has been subdued by a debt crisis that erupted in the spring. Exports of electric generators, civilian aircraft and machine tools did buck the downward trend in June to post increases.
