The U.S. trade deficit in goods widened sharply in July to $118.8 billion, up from $101.4 billion in June. Imports rose $11.4 billion to $318.2 billion, while exports fell $6 billion to $199.4 billion.

U.S. wholesale inventories also increased 1.3% to $959.1 billion, while retail inventories rose 0.7% to $838.5 billion. Both inventory measures were higher than a year earlier, suggesting businesses continued building stock despite trade pressures.