U.S. trade deficit narrows slightly to $105 billion
Exports rise faster than imports in September, though both sides of the trade ledger increase.
The U.S. goods and services trade deficit narrowed to $105.0 billion in September from a revised $105.7 billion in August, the Census Bureau and Bureau of Economic Analysis reported Wednesday.
Exports rose 1.9% to $321.5 billion, while imports increased 1.2% to $426.6 billion. The deficit therefore shrank even though the country bought more from abroad: export growth was stronger.
The change was small. A $105 billion monthly gap still means imports exceeded exports by a wide margin. It should not be confused with a decline in overall trade or a fall in imports.
The figures are adjusted for seasonal patterns but not for price changes. That means the dollar totals can move because of prices as well as the amount of goods and services traded.
Separately, the Atlanta Fed's GDPNow model lowered its estimate of fourth-quarter real GDP growth to a 3.4% annualized rate from 3.7% on November 2. The model update followed recent trade and services data. GDPNow is a running model estimate, not an official Federal Reserve forecast or a reported GDP result.
For readers tracking the economy, the useful distinction is between the size of the deficit and the activity behind it. September brought a slightly narrower gap alongside higher exports and imports, rather than a broad retreat in cross-border spending.
