The U.S. trade gap unexpectedly
narrowed in September to $51.6 billion as oil imports fell and
exports rose to a record, suggesting growth may have held up
better than forecast in the third quarter.
The shortfall, still the third-largest ever, shrank 3.7
percent from $53.5 billion in August, in part because hurricanes
disrupted oil imports, the Commerce Department’s figures showed
today. The deficit with China was a record $15.5 billion.
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The narrower trade imbalance suggests third-quarter economic
growth may have held near the government’s estimate of 3.7
percent, instead of being revised lower after recent reports
showing below-forecast construction spending and fewer additions
to inventories. The Federal Reserve raised its benchmark interest
rate by one-quarter point to 2 percent Wednesday and said the economy is
“growing at a moderate pace.”
“We’re selling more overseas and that is good news,” said
Joel Naroff, president of Naroff Economic Advisors in Holland,
Pa. “With exports growing, the monetary authorities
should have even more confidence in the economy. Thus, we should
expect them to continue their policy of slowly increasing interest
rates back toward more normal levels.”
Prices of goods imported into the United States rose 1.5 percent in
October, the most in five months, led by oil, the Labor Department
reported Wednesday. Excluding oil, prices fell 0.2 percent after no
change the month before, indicating that competition is limiting
what companies can charge their customers.
Bloomberg News
