America’s trade deficit continued to increase in September as demand for foreign oil and automobiles caused the gap to increase 18 percent to $36.5 billion. The increased demand for foreign goods could be a signal that consumers are preparing to open their wallets again, a point that some analysts see as a positive sign even as the trade deficit widens.
“Sometimes what looks bad on the surface is actually quite good and I think that’s the case this time around,” said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. “Exports are growing strongly and imports are turning up because domestic spending has turned the corner.”
Bloomberg
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