The US trade deficit widened by more than expected in September, reflecting the resilience of American demand for foreign goods.
The shortfall in goods and services trade expanded 4.9% from the prior month to US$61.5 billion (RM286.41 billion), Commerce Department data showed on Tuesday. The median estimate in a Bloomberg survey of economists had called for a US$59.8 billion gap.The value of imports rose to the highest since February, while exports increased to a more than one-year high. The figures aren’t adjusted for inflation.
With the help of solid hiring and low unemployment, American demand for foreign-made goods like cell phones and cars remains firm. That said, there are a growing number of headwinds at home and abroad in the final three months of the year.
Economists anticipate consumer spending to slow markedly from last quarter’s breakneck pace as the labour market begins to cool.