Connect With PPD
Follow Us:
Sections: Economy

Imports From China Hit Record High Even as Exports Trim Deficit to 7-Month Low

Stacked shipping containers in U.S. trade port. (Photo: Reuters)

The Commerce Department said on Wednesday the U.S. trade deficit narrowed by 15% to $40.8 billion in September, its lowest level in seven months. Economists polled by Reuters had forecast the trade gap shrinking to $41.1 billion in September.

The report shows much of the widening deficit posted in August was reversed, though the prior month’s numbers were revised slightly down to $48 billion from the previously reported $48.3 billion. When adjusted for inflation, the deficit fell to $57.2 billion in September from $63.0 billion in the prior month. Trade had virtually no impact on gross domestic product (GDP) for the third quarter, which clocked in at just 1.5%. The steep decline in economic growth from the second quarter, which came in at 3.9%, was fueled in large part by a slow pace of inventory accumulation scaling back from energy firms.

Exports in September rose 1.6% to $187.9 billion and exports of services hit a record high. There were also increases in exports of capital goods, while exports of industrial supplies and materials fell to their lowest since October 2010. Imports of industrial supplies and materials also fell to their lowest level since August 2009, as petroleum imports saw their lowest since May 2004 largely fueled by an increased domestic energy production and lower oil prices.

The price of petroleum averaged $42.72 per barrel in September, down from $49.33 in August and $92.52 in September 2014.

However, imports from China hit a record high in September, pushing the politically sensitive U.S.-China trade deficit to an all-time high of $36.3 billion. That was up 3.8% from August. The news will certainly be echoed by GOP frontrunner Donald Trump, who has harshly criticized politicians on both sides of the aisle for “losing” to China by negotiating imbalanced trade deals and allowing currency manipulation.

READ FULL STORY

SubscribeSign In
PPD Business Staff

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

Share
Published by
PPD Business Staff

Recent Posts

Media’s Worst Russian Collusion Sins May Soon Be Repeated

The most damning journalistic sin committed by the media during the era of Russia collusion…

1 year ago

Study: Mask-Mandates and Use Not Associated With Lower Covid-19 Case Growth

The first ecological study finds mask mandates were not effective at slowing the spread of…

3 years ago

Barnes and Baris on Big Tech’s Arbitrary Social Media Bans

On "What Are the Odds?" Monday, Robert Barnes and Rich Baris note how big tech…

3 years ago

Barnes and Baris on Why America First Stands With Israel

On "What Are the Odds?" Monday, Robert Barnes and Rich Baris discuss why America First…

3 years ago

Personal Income Fell Significantly in February, Consumer Spending Weaker than Expected

Personal income fell $1,516.6 billion (7.1%) in February, roughly the consensus forecast, while consumer spending…

4 years ago

Study: Infection, Vaccination Protects Against Covid-19 Variants

Research finds those previously infected by or vaccinated against SARS-CoV-2 are not at risk of…

4 years ago

This website uses cookies.