The U.S. trade deficit, or the difference between exports and imports, widened by almost $8 billion to $49.9 billion in June, according to figures from the U.S. Department of Commerce.
Exports from the United States dropped by the most in a year. A strengthening U.S. dollar over the past two months partially contributed to the trade deficit, but its deeper implications relate to a continued weakness in the global economic recovery, especially in continental Western Europe, where many countries are facing austerity measures and tough budget cuts.
On Wednesday, the Bank of England told the media that U.K. economic growth this year will be smaller than forecast, casting into doubt the recovery in the U.K.
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