US Goods Trade Deficit Surges to 2-1/2-Year High on Jump in Imports

MACROECONOMICS - WASHINGTON. The U.S. trade deficit in goods widened to a 2-1/2-year high in September amid a surge in imports, prompting some economists to trim their economic growth estimates for the third quarter.

Nonetheless, the jump in imports reported by the Commerce Department on Tuesday was likely a sign of strong domestic demand, with consumer spending expected to have been the main driver of growth last quarter. The hit on GDP from trade is likely to be blunted by a rise in retail inventories.