The deficit in the broadest measure of US trade rose to the highest level in more than eight years this spring.

A deal that heads off an unprecedented US financial default and begins the process of curbing the country’s spiralling debt was expected to clear a final legislative hurdle in the Senate today, just hours before the deadline.

Despite the economic compromise, the US could still lose its coveted AAA debt rating some time in the next six months, largely because the agreement does not cut enough spending.

America’s Republican-controlled House of Representatives has approved a bitterly-fought compromise to prevent a US debt default – with a price tag of deep spending cuts.

The US House of Representatives voted 269-161 today to keep the government from defaulting on its debts.