Last Update: 23-Nov-15 17:58 ET
- The U.S. trade deficit narrowed in September to $40.8 billion from an upwardly revised $48.0 billion (from -$48.3 bln) in August. That was better than the $43.0 billion deficit projected by the Briefing.com consensus.
- The September trade deficit was not that far off from the BEA's estimate of -$40.6 billion that was embedded in the advance Q3 GDP report. Accordingly, revisions to net exports shouldn't have much bearing on the second estimate for Q3 GDP.
- The improvement in September was owed to imports being $4.2 billion less than August imports and exports being $3.0 billion more than August exports.
- The decrease in the goods and services deficit was paced by a $7.3 billion decrease in the goods deficit and a $0.1 billion decrease in the services surplus.
- The bump in exports came primarily from consumer goods (+$1.28 bln), which was led by increases in artwork, jewelry, and cell phones, and a $0.89 billion increase in capital goods, excluding autos.
- Imports of industrial supplies and materials fell by $1.58 billion, the bulk of which was related to crude oil (-$1.28 bln), capital goods dropped by $1.04 billion, auto imports decreased by $0.84 billion, consumer goods declined by $0.44 billion, and imports of other goods were down $0.49 billion.
- The drop in imports was surprisingly broad-based given the dollar's strength and didn't exactly connote an element of strong demand in the US.