US Trade Deficit Narrows to Best Level Since 2009, Prompting Atlanta Fed GDPNow to Raise Q4 GDP Projection to 5.4%

US Trade Deficit Narrows Significantly in October

In October, the United States saw a remarkable improvement in its trade deficit for goods and services, shrinking by $19 billion to reach $29 billion. This marks the smallest trade gap recorded since 2009, based on the latest seasonally adjusted data from the Census Bureau (note: figures are not adjusted for inflation).

For years, the substantial US trade deficit has been a drag on economic expansion, as negative net exports tend to slow GDP growth. The notable reduction in October’s deficit is expected to boost GDP performance in the fourth quarter. In contrast, previous surges in the trade gap have had the opposite effect, dampening economic momentum.