U.S. Trade Deficit Widens as Imports Surge

The U.S. trade deficit in goods expanded significantly in September due to a rise in imports, impacting economic growth in the third quarter. The trade gap rose 14.9% to $108.2 billion, with exports declining. This marks the third consecutive quarter where trade negatively influenced GDP growth.

The U.S. trade deficit in goods widened dramatically in September, as reported by the Commerce Department's Bureau of Economic Analysis. The surge in imports led to a 14.9% increase in the goods trade gap, reaching $108.2 billion. This growing deficit suggests a continuing negative impact of trade on the nation's economic growth in the third quarter.

This is the third consecutive quarter where trade has subtracted from the gross domestic product. The government is set to release its preliminary GDP estimate for the period from July to September on Wednesday. According to a Reuters survey of economists, the economy is expected to have grown at a solid 3.0% annualized rate in the last quarter, maintaining the pace set in the previous quarter.

Despite the robust growth prediction, the widening trade deficit hints at underlying challenges for sustaining economic momentum. Policymakers and economists are keen to address these concerns as they assess the overall economic landscape.

(With inputs from agencies.)