US June trade gap biggest since 2008

The US trade deficit sharply grew in June to its widest since October 2008 as exports fell, official data showed Thursday.The Commerce Department said the international trade gap was a seasonally adjusted $53.1 billion, after an upwardly revised $50.8 billion in May.The June trade deficit was far wider than expected by most analysts, who penciled in an average estimate of $48.0 billion due to slowing demand as the economy staggers. Imports fell 0.8 percent from May, to $223.9 billion. The decrease was mainly due to a decline in prices for oil and commodities used in manufacturing, a sector that slowed in June. But in a more worrying development for US economic growth, exports fell for the second consecutive month in June, by 2.3 percent from May to $170.9 billion. The sectors hardest hit by falling demand for US goods were industrial supplies and materials; capital goods; and foods, feeds and beverages.The unexpected drop in exports could lead to a lower estimate for second-quarter growth in gross domestic product, the broad measure of the nation's goods and services output. The first estimate of GDP growth in the April-June period was a weaker than expected 1.3 percent rise from the same period in 2010