US: Trade deficit narrow to a five-month low, net export to remain a drag on GDP – Wells Fargo

Reflecting the global growth slowdown and the ongoing US/China trade war, the trade deficit narrowed in September, as activity in both exports and imports eased, explained analysts at Wells Fargo. 

Key Quotes: 

“The trade deficit narrowed to $52.5 billion in September, marking the smallest shortfall since April. Exports fell 0.9%, while imports decreased 1.7% on the month. The decline in imports reflects the imposition of the September 1 tariffs, which included the consumer goods category.”

“No doubt the U.S.-China trade war has hampered global trade flows, and while there are some signs of potential relief, that relief will still take some time to unfold. We look for net exports to remain a slight drag on U.S. GDP growth in the fourth quarter.”