The U.S. Trade Balance, aka the deficit, managed to come in much more narrow than expected in the month of September. A deficit of $41.5 billion is still wide, but it was well under the Bloomberg consensus of $45.4 billion. Bloomberg even had a range of $42 billion to $46.5 billion. In short, the report was narrower than every single economist was calling for.
Petroleum appears to be the main factor along with a recovery in exports. August was revised to a deficit of $43.8 billion from $44.2 billion. Exports were up by more than 3% after having been down by 1% in August, while imports were up 1.5% after a 0.2% drop was reported in August. The petroleum deficit was $21.7 billion in September, versus $23.5 billion in August, while the nonpetroleum goods deficit grew to $35.2 billion from $34.9 billion. More proof that we are service economy: services surplus rose to $15.9 billion in September from $15.1 billion in August.
Unfortunately, the trade balance just does not move the needle any longer. It is very small when compared to the budget deficit of the government, and the trade balance has not impacted the financial markets for years and years now.
JON C. OGG
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
