U.S. goods trade gap widens in September, raising third-quarter GDP drag
Rising import demand is widening pressure on the U.S. goods trade balance at the end of the third quarter. The September shortfall expands even as exports increase, reinforcing expectations that trade again weighs on overall economic growth.
Highlights
- The U.S. goods trade deficit rose 2.1% to $134.9 billion in September, exceeding the Reuters poll forecast of $130.2 billion.
- Goods imports increased by $8.1 billion to $344.1 billion, outpacing the $5.3 billion rise in exports to $209.2 billion and widening the trade gap.
- Trade is set to subtract from third-quarter GDP for a third consecutive quarter, as strong AI-driven business investment boosts imports of capital goods.
September trade figures and GDP timing
As reported by Reuters, citing the Commerce Department's Census Bureau, the U.S. goods trade deficit widens 2.1%, or $2.8 billion, to $134.9 billion in September. That compares with economists' expectations in a Reuters poll for a $130.2 billion deficit.Goods imports rise by $8.1 billion to $344.1 billion during the month, while goods exports increase by $5.3 billion to $209.2 billion. The larger import gain leaves the trade gap wider than forecast and points to another negative trade contribution in the third quarter.
Import demand shapes broader growth outlook
Trade does not contribute to gross domestic product growth for three straight quarters as an AI investment boom pulls in imports, mostly capital goods. That pattern suggests strong business spending continues to support domestic activity while also increasing reliance on imported equipment.The government is scheduled to publish its advance estimate of third-quarter GDP on Thursday. Economists surveyed by Reuters expect the economy to grow at a 3.2% annualized rate, with AI investment and consumer spending seen as the main drivers after a 2.2% growth pace in the second quarter.
Our earlier article on India’s September merchandise trade deficit detailed how the gap widened as imports outpaced exports, with a higher import bill playing a central role. It also noted that elevated energy prices and geopolitical disruptions were adding pressure to trade balances, even as India pursued export-market diversification through new and pending trade agreements.
Latest GDP News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
