The United States trade deficit for September month on month contracted to $40.8bn. Exports of the economy recorded an increase of 1.6% m/m in nominal terms, after posting a 2.0% m/m fall in previous month. Likewise, imports declined 1.8% m/m in nominal terms from 1.0% fall in previous month.
Adjusting for prices, real goods exports inched up 3.0% m/m from previous month's growth rate of -1.6%. Similarly, real goods imports declined 1.2%, after posting 2.9% in August. The sharp narrowing in the trade deficit of the economy was driven primarily by a decline in the real nonpetroleum goods deficit to $54.2bn from prevous month's $59.3bn.
"Bilateral export data support this thesis; on a y/y basis, exports to Europe, Asia and Latin America remain depressed. With slower growth abroad dampening demand for US exports and solid domestic consumption supporting imports; therefore, the trade deficit is unlikely to continue to narrow in the coming months", argues Barclays.
