Source: Economics Group of Wells Fargo Bank, N.A.Summary
The trade deficit narrowed sharply to -$52.8B in September. Most of the increase in exports was driven by non-monetary gold, which is largely excluded from GDP calculations. The upshot: trade is apt to be far less consequential to top-line growth than it was in the first half.All the Glitters Is Gold
The trade deficit narrowed sharply in September as a modest 0.6% gain in imports was more than offset by a 3.0% increase in exports. While it is tempting to see a rebound in exports as a positive development for manufacturing, a word of caution: Of the $8.8 billion monthly increase in goods exports, $6.1 billion of the increase came from exports of non-monetary gold.