The U.S. trade deficit swelled to the widest in 12 years in July, pointing to a bumpy economic recovery ahead.

The overall gap of goods and services expanded to US$63.6 billion in July from a revised US$53.5 billion in June, according to Commerce Department data released Thursday. The median estimate of economists surveyed by Bloomberg had called for a widening to US$58 billion.

Exports increased from the prior month by 8.1 per cent to US$168.1 billion, while imports gained 10.9 per cent to US$231.7 billion, the department said. Together, the value of U.S. exports and imports rose to US$399.8 billion, still well below pre-pandemic levels.

The widening in the trade deficit in July after narrowing the prior month shows that the U.S.’s economic recovery will come in fits and starts. Trade volumes are higher than May’s pandemic lows, but remain depressed following the initial uptick stemming from reopening measures.