The US trade deficit widened to a two-year high in July, fueled by a surge in imports of goods and partly reflecting stepped-up efforts by companies to ensure adequate supply ahead of a potential dockworkers’ strike.

The figures are an indication of strong domestic demand and inconsistent with financial market fears of a recession

The country registered a $4.87 billion trade deficit in July, the widest shortfall in 16 months as both exports and imports posted increases. Preliminary data from the Philippine Statistics Authority showed the balance of trade in goods or the difference between the value of exports and imports amounted to a $4.

Economists polled by Econoday were looking for the deficit to widen to a $98 billion deficit from last month’s $96.6 billion gap.

B vs. -$97.8B consensus and up $6.1B from $96.6B in June. Exports of goods for July were $172.9B, almost unchanged from June exports. Imports of goods for July were $275.6B, $6.1B more than June imports.