TSX:FFN - Post Discussion
Post by
mouserman on Nov 05, 2024 9:37am
Trade deficit in US from TD trading desk
The numbers: The U.S. trade deficit jumped to a 30-month high in September, keeping the economy from posting a second straight 3% increase in gross domestic product.
The trade gap leaped by 19.2% to $84.4 billion in September from $70.8 billion in the prior month because of a surge in imports, the government said Tuesday. That was in line with the Wall Street forecast.
Businesses rushed to bring in imported goods such as consumer electronics before a pending strike at U.S. ports in early October so they would not get caught short during the Christmas shopping season.
The strike was suspended after three days, however.
The trade deficit is likely to shrink in the next month or two, but a higher gap depressed GDP in the third quarter. The trade deficit shaved 0.6% percentage points off the rate of U.S. growth in the three months from July to September.
GDP rose at a 2.8% annual pace vs. 3.0% in the second quarter.
Key details: Imports rose 3.0% in September to a record $352.3 billion. Shipments of foreign-made consumer goods shot up by $4 billion to mark the largest gain in almost two years.
U.S. exports fell 1.2% to $267.9 billion after setting a record in the prior month. The U.S. exported fewer passenger planes, drugs and oil.
Big picture: The trade deficit is unlikely to weigh heavily on fourth-quarter GDP if it narrows as expected.
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