Last Update: 05-Dec-19 09:27 ET
- The trade deficit for October narrowed to $47.2 billion (Briefing.com consensus -$48.5 billion) from an upwardly revised $51.1 billion (from -$52.5 billion) in September.
- The narrowing in the deficit was a function of exports (-$0.4 billion) declining less than imports (-$4.3 billion).
- Exports of goods decreased by $0.8 billion, with consumer goods down $0.7 billion, capital goods down $0.4 billion, and automotive vehicles, parts, and engines down $0.3 billion.
- Imports of goods decreased by $4.5 billion, with consumer goods down $2.4 billion, and automotive vehicles, parts, and engines down $1.8 billion.
- The goods trade deficit with China was $27.8 billion in October versus $28.0 billion in September. Year-to-date, the goods deficit with China stands at $294.2 billion versus $344.9 billion at the same point in 2018.
- The real trade deficit of $79.1 billion was 6.6% below the third quarter average, which will compute as a positive input in Q4 GDP models.
- The key takeaway from the report, however, is that a decline in both exports and imports for the second straight month is not a hallmark of a global economy running strong.