Exports recover after August dip
By Jeffry Bartash, MarketWatch
WASHINGTON (MarketWatch) — The nation’s trade deficit fell by 5.1% in September, plumbing the lowest level in nearly two years, as exports rebounded and imports rose at a slower rate.
The trade gap shrank to $41.5 billion from a downwardly revised $43.5 billion in August, according to seasonally adjusted numbers released Thursday by the Commerce Department.
Economists surveyed by MarketWatch had forecast the trade deficit would total about $45.1 billion in September.
The surprising drop in the deficit suggests the economy grew somewhat faster in the third quarter than previously believed. Economic firms surveyed by MarketWatch raised their estimate of third-quarter growth to 2.6% from an initial reading of 2.0%. That’s because higher exports relative to imports adds to the economy’s growth.
The second of two revisions to GDP will be released Nov. 29.
After having fallen in August, exports recovered in September, climbing by 3.1% to $187 billion. U.S. companies delivered more goods and services to developing markets in Latin America, the Middle East and India.
“Overall the increase in exports is a positive indicator for the U.S. manufacturing sector, which has shown tentative signs of improvement in recent months,” said economist Andrew Grantham of CIBC World Markets.
Higher exports to those areas helped offset slower demand in China and Europe, two regions whose economies have cooled. September’s exports to China fell and rose only slightly to Europe, a major U.S. trading partner.
Imports, meanwhile, rose by 1.5% to $228.5 billion.
The deficit in goods — items like autos, electronics or farm crops — narrowed to $57.5 billion from $58.9 billion.
The surplus in services, such as legal advice, accounting or entertainment, rose to $15.9 billion from $15.1 billion.
Jeffry Bartash is a reporter for MarketWatch in Washington.
