The US trade gap expanded more than expected to 62.2 billion dollars in July, the widest since March 2007, because of soaring oil prices, government figures showed Thursday. The deficit grew 5.7 per cent, from 58.8 billion dollars in June, according to data released by the Commerce Department. This year's soaring energy prices and a 15-per-cent increase in oil imports ensured that the petroleum deficit alone was 43.4 billion dollars for the month. In July, oil prices were at a high of 124.66 dollars a barrel, countering any expected gains from the export of automobiles, aircraft and machinery, Bloomberg financial news reported. Oil has subsequently fallen to about 100 dollars a barrel, and a continuing decline will help narrow the overall trade deficit. If petroleum products were excluded, the trade gap would actually shrink to its lowest since October 2002, the data showed. Exports of goods and services increased by 3.3 per cent in July to a record high of 120.8 billion dollars, which drove overall exports to 168.1 billion dollars. The import of 195.7 billion dollars worth of goods drove overall imports to a record 230.3 billion dollars in July. Despite the deficit, US Trade Representative Susan Schwab pointed to the surging export numbers that have helped prop up the sluggish US economy. "Month after month, the trade data has confirmed that our exports are thriving in markets around the world," Schwab said in a statement.
