Trade Deficit Widens Slightly

The nation's trade deficit widened slightly to $43.5 billion in September from August's revised $42.8 billion. Exports rose 1.1 percent in the month to $196.8 billion but in a gain offset by a 1.2 percent rise for imports to $240.3 billion.

Exports of industrial supplies jumped $1.9 billion in the month to $38.4 billion yet with most other components, including the key capital goods group, showing declines. A plus is exports of services which rose a solid 0.4 percent to $66.2 billion in the month.

Imports of capital goods were especially strong in the month, at $41.1 billion for a $1.1 billion gain that underscores the uplift underway in U.S. business investment. Imports of consumer goods rose slightly to $49.2 billion with oil imports down slightly, to $9.2 billion. Imports of services jumped 1.0 percent to $44.3 billion.

The strength of capital goods imports may be a negative in the GDP calculation but it is a positive for the U.S. economy, pointing to new equipment and better growth ahead. Exports in today's report are mixed but still consistent with solid cross-border demand.

Recent History Of This Indicator:
The international trade deficit narrowed in August to $42.4 billion as exports rose and imposts fell. Advance data for September showed a slight widening in the goods portion of the deficit with widening the overall call for the month, to $43.4 billion.