US trade deficit jumps to 30-month high

5th Nov 2024 15:24

(Sharecast News) - The US trade deficit rose to its highest in 30 months in September as businesses rushed to import goods before a planned strike at American ports.

The trade balance ballooned to -$84.4bn, its highest since April 2022, after jumping by 19% over the month. A mass strike across US ports was initially planned for early October but was called off after just three days.

September's deficit was up from a downwardly revised deficit of $70.8bn in August but in line with economists' predictions.

Exports were 1.2% lower at $267.9bn, but imports jumped 3% to a new record of $352.3bn, with increases seen in pharmaceutical products, computers, semiconductors, passenger cars and industrial supplies and materials.

"We expect imports to outpace exports in the short term, as investment in data centres and semiconductors supports capital goods imports and a strong consumer pushes retailers to build out inventories," said Matthew Martin from Oxford Economics.

"The outcome of the election could add upside risk to imports if businesses seek to pre-empt potential tariff increases in the event of a second Donald Trump presidency."