Exports Led by Gold and Pharmaceuticals Rise 3%
Imports Increase by Only 0.6%
The U.S. trade deficit in September unexpectedly narrowed significantly, reaching its lowest level since mid-2020. The reduction in the deficit was driven by increased exports of gold and pharmaceuticals.
On the 11th (local time), the U.S. Department of Commerce announced that the goods and services trade deficit for September was $52.8 billion, down 10.9% from the previous month. This figure is lower than the $63.1 billion forecast by experts surveyed by Bloomberg.
Exports rose 3% from the previous month to $289.3 billion, marking the second-highest level on record. In particular, exports of non-monetary gold and pharmaceuticals led the overall increase. It is analyzed that gold, which had rapidly flowed into the U.S. in the first half of the year due to the possibility of tariffs, began to flow abroad again after President Donald Trump announced in August that gold would be excluded from tariffs. Meanwhile, imports rose only 0.6% during the same period, reaching $342.1 billion.
With volatility in trade indicators increasing this year due to changes in U.S. tariff policy, the September trade balance is expected to serve as a key data point for revising third-quarter gross domestic product (GDP) forecasts. The Federal Reserve Bank of Atlanta raised its real GDP growth forecast for the third quarter from 3.5% to 3.6%, reflecting this figure. However, some point out that analysis has become more complicated because the U.S. government excludes transactions of gold not used for industrial purposes from GDP calculations.
The U.S. trade deficit surged until March as companies increased imports in advance to secure inventories before reciprocal tariffs took effect in April, but then narrowed again once the tariffs were implemented. Since then, the size of the deficit has fluctuated in response to changes in tariff policy.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
