The U.S. trade deficit widened more than expected in June as an acceleration in domestic demand in the second quarter and a strong dollar sucked in imports of food and automobiles.
The Commerce Department said on Wednesday the trade gap increased 7.1 percent to $43.8 billion, which also reflected a second straight monthly drop in exports.
May's trade gap was revised to $40.9 billion from the previously reported $41.9 billion.
Economists had forecast the trade deficit rising to $42.8 billion. When adjusted for inflation, the deficit increased to $59.3 billion in June from $57.6 billion in the prior month.
The trade data likely will have a marginal impact on the second quarter gross domestic product estimate released last week, as the deficit on the goods balance came in a bit higher than the advance figure incorporated in the GDP report.