High Import Levels Widens US Trade Gap

Summary: High Import Levels in September has widened the US trade gap. But analysts take the latest data as a welcoming activity to the overall US economy, saying that the trade relations between the Americans and other nations are starting to normalize and resulted to more than 3.5 percent increase in the current quarter.

The surge in the United States import has resulted to a wider trade deficit in September, the US Commerce Department reported on Friday.

 In a report, the department said that the trade deficit has increased by 18 percent due to the surging imports of the US. But despite the growing sensitivity in the US-China relations, the agency said that it is a sign of an improving trade flow, adding that the economy is well on its way to the top.

The report, which was released on Friday, also cited the rise in oil import cost, which led to the wider gap in the goods and services ($36.5 billion). It was the highest post since the start of the year and the longest void in more than a decade.

Analysts, who expected a shortened trade gap, were also surprised by the figures, which have jumped from the $30.8 billion last August.“Despite the widened gap in the deficit trade between China and the US, the report showed a stunning description of the overall economy. The strong signs of recovery in each sector especially with the trade starting to go back to normal,” Moody’s economy.com economist Chris Cornell said.

Cornell added that the mend on the US economy has a direct connection to the positive trade data, which resulted to the 3.5 percent growth in the economic activity in the third quarter of the year.“The important thing is that we are trading again,” he added.