US trade gap widened more than expected in September

FILE PHOTO: Stacked containers are shown as ships unload their cargo at the Port of Los Angeles in Los Angeles, California, U.S. November 22, 2021. REUTERS/Mike Blake/File Photo

The U.S. trade deficit widened more than expected in September, making it less likely for trade to have contributed to growth in the third quarter.

The trade deficit expanded 4.9 percent to $61.5 billion from a modestly revised $58.7 billion in August, which was the lowest level since September 2020, the Commerce Department said on Tuesday. Economists polled by Reuters had forecast the trade deficit shrinking to $59.9 billion in September.

Exports of goods and services increased 2.2 percent to $261.1 billion. Goods exports shot up 3.1 percent to $176.7 billion. At $84.4 billion, exports of services were the highest on record.

Imports of goods and services rose 2.7 percent to $322.7 billion. Goods imports rose 2.7 percent to $263.0 billion, while services imports increased 2.6 percent to $59.6 billion.

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The services surplus retreated modestly to $24.8 billion from a revised $25.9 billion. In the advance reading of third-quarter gross domestic product reported last month, trade was a fractional drag on the period’s outsized 4.9 percent annualized growth rate.