US trade deficit grows as strong dollar hits exports

Imports and Exports | | MIC Customs Solutions |

New figures show exports from the US fell in September as the strong dollar made goods more expensive for buyers, whereas imports rose.

The US' goods trade deficit has climbed for the first time in five months on the back of a strong dollar that has harmed exports from the country while helping stimulate imports, new figures have shown.

Data from the country's Commerce Department showed the trade gap increased in September by 5.7 percent, climbing to $92.2 billion from $87.3 billion in the previous month.

However, the impact of this was not enough to reverse the significant decline in the trade deficit seen since the spring, which should help propel the country's economy to its first quarterly growth since 2021.

Overall, the trade gap in goods has shrunk by a third from the record high of$125.3 billion recorded in March.

Exports declined by 1.5 percent to $177.6 billion, with a drop in value of 3.1 percent for industrial supplies one of the main contributors to this. Shipments of food, feeds and beverages out of the country also fell as the strong performance of the dollar made US goods more expensive for overseas buyers.

By contrast, imports rose to $269.8 billion, with consumer goods a major factor in this. Inbound shipments of these items climbed by 1.4 percent over the same period to $69 billion as US buyers looked to take advantage of their increased purchasing power.

Bloomberg also reported that supply chain issues that have held up many US imports at backlogged ports have also begun to ease in recent months due to a combination of  logistics improvements and interest-rate increases weighing on demand.