US goods trade deficit surges to 2-1/2-year high

The US goods trade deficit rose 15% in September, hitting its highest level in 2-1/2 years, marking a higher-than-expected increase.

The goods trade deficit rose to $108.2 billion last month, from $94.2 billion in August, compared with expectations for a deficit of just $96 billion, the Census Bureau data released Tuesday showed.

This was likely due to retailers stocking up on goods ahead of a workers’ strike at major US ports, which ended in early October. This significant increase could limit the GDP growth in the third quarter.

Exports amounted to $174.2 billion last month, down $3.6 billion from August, while imports rose $10.4 billion to $282.4 billion.

The data showed that retail inventories, or unsold goods, surged by 0.8% in September, while wholesale inventories fell by 0.1%.