EmailThe U.S. trade deficit dropped to $41.5 bln in September from a downwardly revised $43.8 bln (from $44.2 bln) in August. That was the smallest monthly trade deficit since December 2010. The Briefing.com consensus expected the trade deficit to widen to $45.4 bln.
According to the advance Q3 2012 GDP report, the BEA assumed the trade deficit widened to $45.9 bln in September. The smaller-than-expected deficit will boost third quarter growth in the second estimate. The goods deficit declined to $57.5 bln in September from $58.9 bln in August. The services surplus rose to $15.9 bln from $15.1 bln. Led by strong gains in industrial supplies ($3.4 bln) and food ($1.1 bln), exports increased 3.1% to $187.0 bln in September. Imports rose 1.5% to $228.5 bln in September. Most of the gain was the result of the iPhone 5 as cell phone imports jumped by $1.6 bln in September. Other large gains were seen in industrial supplies and materials ($1.2 bln). The petroleum deficit fell from $23.5 bln in August to $21.7 bln as demand for energy goods continued to soften.
