U.S. Trade Deficit Wider Than Expected

The U.S. trade deficit widened more than expected in September, making it unlikely that trade will contribute to growth during the third quarter. The Commerce Department indicated today, Tuesday, that "the trade deficit increased by 4.9 percent to $61.5 billion from $58.7 billion, following a slight adjustment in August, which was the lowest level since September 2020." Economists polled by Reuters had predicted a contraction of the trade deficit to $59.9 billion in September. Exports of goods and services rose by 2.2 percent to $261.1 billion. Goods exports increased by 3.1 percent to $176.7 billion, while service exports reached $84.4 billion, the highest ever. The surplus in services dipped slightly to $24.8 billion from $25.9 billion.