U.S. Trade Deficit Is Widest Since January, record imports from China

BLOOMBERG – SHO CHANDRA

The surge in imports probably reflected merchants preparing for the holiday-shopping season. Consumer goods imports increased almost $800 million, including a $303 million gain in cell phones and other household goods, as well as more inbound shipments of furniture, appliances, toys and clothing.

The shortfall in goods and services trade, if sustained, may weigh on economic growth in the fourth quarter after net exports added 0.43 percentage point to gross domestic product in the previous three-month period.

Steady consumer spending and a pickup in business investment will continue to drive demand for imports. At the same time, sales of American-made merchandise could improve as economies in the rest of the world advance.

Read more at Bloomberg

Advertisements