THE United States trade deficit surged in June to the highest level since October 2008 and imports of foreign consumer goods hit an all-time high. But US exports faltered, representing a setback for American manufacturers.

The deficit jumped 18.8 percent in June compared to May, widening to US$49.9 billion, the Commerce Department reported yesterday. The wider deficit came as a surprise to economists who had forecast a smaller trade gap because of lower global oil prices.

US exports slipped 1.3 percent to US$150.5 billion. Sales of American farm products, computers and telecommunications equipment all declined. Imports rose 3 percent to US$200.3 billion. Imports of consumer goods surged to a record high as shipments of cell phones, household appliances, televisions and clothing all increased.

The deficit in goods and services, the difference between what America sells abroad and what the country imports, rose to the highest level since October 2008 when it stood at US$59.4 billion.

Economists said the wider deficit in June will further depress overall US growth as measured by the gross domestic product in the April-to-June quarter. The Commerce Department initially estimated growth at 2.4 percent for the second quarter.

Sal Guatieri, an economist at BMO Capital Markets, said the deteriorating trade deficit and other weaker data would probably push the revised growth estimate for the second quarter to below 2 percent. The government is scheduled to release the revised figure on August 27.

"The slowing in exports will only fan fears of a faltering US recovery," Guatieri said in a research note.

Through the first six months of this year, the deficit is running at an annual rate of US$494.9 billion. That is up 32 percent from the US$374.9 billion deficit for all of 2009 - a year when the deficit was cut nearly in half as a result of the recession.

Economists had expected the deficit to widen this year as an improving domestic economy lifted US demand for foreign consumer goods and industrial products.

American manufacturers have enjoyed growing demand for their products in Asia. But they have faced weakness in Europe, where the economic rebound has been subdued by a debt crisis that erupted in the spring.

For June, the US trade deficit with China rose 17.4 percent to US$26.2 billion. Through the first six months it is running 15.9 percent higher than the same period a year ago.