US Goods Trade Deficit Declines to Smallest in Three Years, Bloomberg Reports
6 Jan, 2020
- The further narrowing of the trade deficit will help give a boost to growth in the fourth quarter. Imports were a slight drag on gross domestic product growth in the two prior periods, while exports of goods provided a slight tailwind in the third quarter after weighing in the prior three-month period.
- The report comes after the U.S. and China agreed this month to the first phase of a trade agreement in which Washington will ease tariffs, and at least temporarily calm fears of an escalating trade war between the world’s two largest economies. Chinese Vice Premier Liu He is set to lead a delegation to Washington on Dec. 28 to sign the deal, the South China Morning Post reported on Dec. 30.
- Exports got a boost from a 3.4% increase for automotive products and 2.6% gain for consumer goods, while imports decreased across industrial supplies, consumer products and capital goods.