Record US Exports Narrows Trade Deficit

The U.S. trade deficit unexpectedly narrowed in September to the lowest level in almost two years as exports climbed to a record. The gap shrank 5.1 percent to $41.5 billion, the smallest since December 2010 and lower than any estimate in a Bloomberg survey of economists, from $43.8 billion in August, Commerce Department figures showed today in Washington. The increase in sales to overseas buyers was broad-based, with everything from soybeans to fuel and civilian aircraft showing gains.

Growing demand from emerging markets in South and Central America may be helping to overcome a slowdown in Europe and China that is hurting companies such as Emerson Electric Co. (EMR) At the same time, imports also climbed as U.S consumers are beginning to spend more as the job market stabilizes.

“We know that global growth is weaker than it was a year or two ago, but what we’ve seen more recently is that while the European economy remains very soft, there are signs that emerging markets have turned a corner,” Jeremy Lawson, senior U.S. economist at BNP Paribas in New York, said before the report

The median forecast in a Bloomberg survey of 75 economists called for the deficit to expand to $45 billion. Estimates ranged from a gap of $42 billion to $47.6 billion. The Commerce Department revised the August deficit from an initially reported $44.2 billion.


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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell