US trade balance shrinks 15% in September
The US trade deficit slumped 15% in September, as imports declined because of cheaper oil prices, figures released on Wednesday showed.
According the Commerce Department, the trade gap declined to a seasonally adjusted $40.8bn in September from a downwardly revised $48bn in the previous month and compared with analysts’ expectations for a $41bn reading.
Exports rebounded 1.6% month-on-month in nominal terms, from a 2% decline in the previous month, while imports fell 1.8% month-on-month in nominal terms compared with a 1% gain in August.
Adjusting for prices, real goods exports were up 3.0% month-on-month after a 1.6% decline in the previous month and real goods imports declined 1.2% compared with a 2.9% gain in August.
The narrowing was driven primarily by a decline in the real nonpetroleum goods deficit from $59.3bn to $54.2bn, while the real petroleum deficit was little changed, as it rose $0.1bn to $9bn.
“We view the sharp September narrowing in the trade deficit largely as payback from the rapid widening seen in August,” analysts at Barclays said.
“The broader trend in the real goods deficit points to the likelihood that net trade will be a drag on growth in coming quarters.
“With slower growth abroad dampening demand for US exports and solid domestic consumption supporting imports, we do not expect the deficit to continue to narrow in the coming months."