U.S. trade deficit widens in August, net exports likely to weigh in on real GDP growth in Q3 2018

The U.S. international trade data for August shows that trade deficit widened. The latest trade data implied that the net exports might significantly subtract from the real GDP growth in the third quarter, stated Barclays in a research report. The overall goods trade deficit widened to USD 75.8 billion in the month from July’s deficit of USD 72.2 billion. This is slightly softer than consensus expectations of a deficit of USD 70.6 billion.

The widening of deficit was mainly due to movements in both exports and imports, with exports of goods falling 1.6 percent sequentially and imports rising 0.9 percent on a sequential basis. Stripping petroleum, exports dropped 2.1 percent sequentially and imports rose 0.7 percent.

So far in the third quarter, the monthly trade deficit in goods has averaged USD 74 billion, up from an average monthly balance of USD 66.7 billion, up from an average monthly balance of USD 66.7 billion in the second quarter and comparable in magnitude to the average monthly deficit of USD 72.7 billion in the first quarter.

At 17:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was bullish at 95.091. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex