US: Improvement in Advance Goods Trade Balance – TDS

Analysts at TD Securities note that the US advance goods trade balance showed an improvement for September, posting a USD 70.4bn deficit, up from the downward-revised 73.1bn trade gap registered in August.

Key Quotes

“Compared to Q2, net exports should be less of a drag to growth in Q3. On the other hand, wholesale inventories surprised to the downside, registering a -0.3% decline for September (mkt +0.3%). This continues a downtrend after hitting a peak in growth in July and thus will be of less support to growth for Q3 GDP.”