US: Trade balance likely to narrow to $52.2bn - Nomura

Analysts at Nomura expect a slight narrowing of the US trade gap in September to $52.2bn from $53.2bn.

Key Quotes

“According to the Census Bureau’s advance report, the nominal goods trade deficit widened only modestly as goods exports rebounded sharply and outpaced a healthy gain in goods imports.”

“A sharp gain in goods exports will narrow the trade gap only temporarily. We think that the diverging external and domestic growth and a stronger US dollars should contribute to a widening trade deficit in coming months.”