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U.S. trade deficit widens in September; inventories mixed -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: A pair of sea gulls perched on a lamppost near shipping containers that were stacked at Boston’s Paul W. Conley Container Terminal (Massachusetts, U.S.A.), May 9, 2018. REUTERS/Brian Snyder

WASHINGTON (Reuters] – In September, the U.S. trade deficit for goods soared as exports plummeted. It suggests trade may have weighed again on economic growth during the third quarter.

Commerce Department reported Wednesday that the deficit in goods trade rose 9.2%, to $96.3 billion. Exports of goods fell 4.7% while imports increased 0.5%.

Also, the report showed wholesale inventories increasing 1.1% over last month.

Retail inventory fell by 0.2%. It was accompanied down by a 2.4% fall in auto dealer stocks. This was due to an undercutting global chip shortage.

The retail inventories, including autos which are included in the calculation of GDP rose 0.6%

An economist survey by Reuters found that the economy grew at 2.7% per year in the third trimester. It would mark a decline from the 6.7% growth rate recorded in the previous quarter.

In the first half, inventories were low. According to economists, the rate of decline slowed in the third quarter. This is responsible for most of the expected GDP growth.

For a year trade has been a major drag on GDP growth, and inventories have been decreasing output for the past two quarters.

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