The latest numbers on the trade deficit in goods
- Smallest gap since 2016
- Prior was $66.8B
- Imports of industrial supplies at lowest since July 2017
- Exports +0.7%
- Imports -1.3%
In October a fall in imports to $201B from $206B led to an unexpectedly narrow trade deficit in goods. They fell even further this month to $199.6B. Exports ticked up to $136.4B vs $135.5B a month ago.
The fall in imports has been centered on consumer goods, which have fallen to $51.2B from $54.7B two months ago. Imports of industrial supplies and capital goods have also slid. So while a narrower trade deficit is a better sign for GDP, the lack of investment and consumer spending is worrisome. In a related report, retail inventories fell 0.7%.
