Cross-Border Goods Deficit Widens

The cross-border goods deficit widened to $64.1 billion in September vs Econoday's consensus for $63.9 billion and a revised $63.3 billion in August. September imports rose 0.9 percent on increases for capital goods, industrial supplies and food products. Exports rose 0.7 percent but strength was isolated to industrial supplies with capital goods, consumer goods, and vehicles all down.

This report includes preliminary data on September inventories for wholesalers, up 0.3 percent, and also retailers which fell 1.0 percent and which, together with the slightly wider-than-expected goods deficit, may trim back estimates for tomorrow's GDP report.

Recent History Of This Indicator:
The goods deficit in September is expected to widen to a consensus $63.9 vs $63.3 billion in August ($62.9 billion initially reported). Exports of consumer goods and vehicles as well as capital goods posted solid gains in August. Also released with the report will be advance September data for both wholesale inventories and retail inventories which, like net exports, are also GDP inputs.