U.S. Trade Gap Widens As Auto Imports Hit Record

America's trade deficit inched up to $42 billion in July from a revised $41.9 billion in June, the first increase in four months, the Dept. of Commerce says.

Exports fell to $183.3 billion in July from a record $185.2 billion in June, including a 4.9% drop in auto and parts shipments to $12.3 billion.

Imports slipped 0.8% to $225.3 billion, mainly because of a month-over-month drop in oil prices. Automotive imports rose 1.9% to a record $26 billion.

America's trade deficit with China grew to a record $29.4 billion in July. The U.S. gap with the European Union zoomed 42.2% to $12 billion, the widest since October 2007, as the region's weak economies dampened demand for imported goods and services.