The trade deficit improved in October and for the right reason-exports were up. The October trade gap narrowed to $40.6 billion from $43.0 billion in September. October was close to analysts' expectations for a $40.2 billion deficit. Exports rebounded 1.8 percent after slipping 0.1 percent in September. Imports rose 0.4 percent in October, following a 1.6 percent increase the month before.
The shrinking of the trade shortfall was led by goods excluding petroleum which narrowed to $39.3 billion from $41.8 billion in September. The petroleum deficit nudged down to $19.6 billion from $19.9 billion in September. The services surplus improved to $19.6 billion from $19.4 billion.
On a not seasonally adjusted basis, the October figures show surpluses, in billions of dollars, with Hong Kong $2.8 ($3.2 for September), Brazil $1.7 ($1.0), and Australia $1.4 ($1.5), among others. Deficits were recorded, in billions of dollars, with China $28.9 ($30.5), European Union $14.3 ($8.0), Germany $6.9 ($6.1), Japan $6.4 ($5.5), OPEC $5.6 ($5.9), Mexico $4.1 ($5.3), Ireland $3.2 ($1.8), Saudi Arabia $3.1 ($3.2), and Canada $3.0 ($3.2) among others.
The October trade numbers indicate that the recovery may be benefitting again from exports. This likely will result in upward revisions to forecasts for fourth quarter GDP growth.
Source: Bloomberg
The shrinking of the trade shortfall was led by goods excluding petroleum which narrowed to $39.3 billion from $41.8 billion in September. The petroleum deficit nudged down to $19.6 billion from $19.9 billion in September. The services surplus improved to $19.6 billion from $19.4 billion.
On a not seasonally adjusted basis, the October figures show surpluses, in billions of dollars, with Hong Kong $2.8 ($3.2 for September), Brazil $1.7 ($1.0), and Australia $1.4 ($1.5), among others. Deficits were recorded, in billions of dollars, with China $28.9 ($30.5), European Union $14.3 ($8.0), Germany $6.9 ($6.1), Japan $6.4 ($5.5), OPEC $5.6 ($5.9), Mexico $4.1 ($5.3), Ireland $3.2 ($1.8), Saudi Arabia $3.1 ($3.2), and Canada $3.0 ($3.2) among others.
The October trade numbers indicate that the recovery may be benefitting again from exports. This likely will result in upward revisions to forecasts for fourth quarter GDP growth.
Source: Bloomberg
