Friday, December 9, 2011

Trade Deficit Narrowed In October

The trade deficit narrowed to $43.5 billion in October from $44.2 billion in September, according to a Census Bureau report released this morning. September’s trade deficit was revised up from an initially-reported $43.1 billion. Both nominal exports and imports fell for the first time since June.

This report suggests that trade could add as much as a half of a percentage point to GDP growth this quarter, up from initial estimates of 0.1 percent boost.

The fall in the trade gap was caused by a larger fall in imports than exports. Imports fell from $224.8 billion in September to $222.6 billion in October. Imports have now fallen for four out of the last five months.

Exports fell, as well, from $180.6 in September to $179.2 billion in October. This is the first decline in exports since June.

The real goods balance narrowed even more, falling from $45.9 billion to $44.2 billion. This is a positive sign for growth.

Read the report.

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