If you thought we could rely on continued improvement in the trade balance for the economic rebound in the U.S., think again. The WSJ reports:

The U.S. trade deficit registered its biggest increase in over 10 years in July, as surging purchases of oil caused an unprecedented jump in imports.

The U.S. deficit in international trade of goods and services widened by 16.3%, its largest percentage increase since February 1999, to $31.96 billion, the Commerce Department said Thursday. That's up from $27.49 billion in June, which was revised from an initial estimate of $27.01 billion.

The July deficit was much higher than Wall Street expectations for a $27.5 billion shortfall.