THE US TRADE DEFICIT JUMPS TO A RECORD HIGH
CNN: November 4, 2021
The US trade deficit jumped to a record high in September as exports slumped, government data showed on Thursday.
The Commerce Department said that the trade gap surged 11.2% to a record $80.9 billion. Economists polled by Reuters had forecast an $80.5 billion deficit.
The global supply chain crisis was largely to blame, as American companies scramble to find parts and goods to build their products. Imports are likely to remain high as businesses rebuild depleted inventories. That has led to surging prices of imports as demand easily outweighs supply.
That’s troubling news for the US economy: Trade subtracted from gross domestic product growth in the third quarter, helping to restrain economic growth to a 2% annualized rate, the slowest in more than a year. The trade gap hasExports tumbled 3.0% to $207.6 billion in September. Goods exports plunged 4.7% to $142.7 billion. The decline was led by industrial supplies, with crude oil exports decreasing $1.0 billion. Capital goods exports also fell. But consumer goods exports were the highest on record.
Imports rose 0.6% to a record $288.5 billion. Goods imports rose 0.8% to $240.9 billion, also a record high. Imports of industrial supplies and materials were the highest since April 2014. Capital goods imports set record highs, as did non-petroleum imports and imports of other goods. been a drag on GDP growth for five straight quarters.