WASHINGTON, Oct 27 — The US trade deficit in goods surged in September as exports tumbled, suggesting trade probably weighed on economic growth again in the third quarter.
The goods trade deficit increased 9.2 per cent to US$96.3 billion (RM400 billion), the Commerce Department said today. Goods exports dropped 4.7 per cent, while imports gained 0.5 per cent.
The report, which was published ahead of tomorrow’s advance third-quarter gross domestic product data, also showed wholesale inventories increased 1.1 per cent last month.
Retail inventories fell 0.2 per cent, pulled down by a 2.4 per cent plunge in stocks at auto dealerships, which reflected a global chip shortage which is undercutting motor vehicle production.
Retail inventories, excluding autos, which go into the calculation of GDP, rose 0.6 per cent.
According to a Reuters survey of economists, the economy likely grew at a 2.7 per cent annualised rate in the third quarter. That would be a step-down from the 6.7 per cent rate notched in the second quarter.
Inventories were depleted in the first half of the year. Economists believe the pace of decline lessened in the third quarter, accounting for the bulk of expected GDP growth.
Trade has been a drag on GDP growth for a year, while inventories have subtracted from output for two straight quarters. — Reuters
