US advance goods trade balance for August -$132.6 billion vs -$115.00 billion expected

Prior was -118.9 billion The US international trade deficit in goods widened to $132.6 billion in August, up $13.7 billion from $118.9 billion in July. The increase was driven primarily by a larger rise in imports than exports. Goods imports climbed $17.4 billion to $336.1 billion, while exports increased $3.7 billion to $203.4 billion. The inventory data showed continued accumulation across both wholesale and retail businesses. Wholesale inventories rose 0.7% from July and were 6.6% higher than a year earlier, while retail inventories increased 0.3% m/m and 4.8% y/y. Both monthly inventory increases were smaller than the previous month's gains, which stood at 1.3% for wholesale inventories and 0.8% for retail inventories. The wider goods trade deficit indicates that imports grew substantially faster than exports in August. In the national accounts, a wider trade deficit can weigh on measured GDP growth because imports are subtracted from overall economic output, although the eventual GDP impact depends on the full composition of trade and other components of activity. Rising inventories provide a separate signal, businesses continued adding stock, but the monthly pace of accumulation slowed from July. The international trade report tracks the value of US goods exports and imports and the resulting trade balance. A deficit means the value of imports exceeds exports. Traders watch the data because net exports are one component of GDP and changes in trade flows can provide information about domestic demand, foreign demand and economic activity. Wholesale and retail inventories measure the value of goods held by businesses at the end of the month, excluding the effect of price changes in these estimates. Inventory changes matter because businesses accumulating or running down stocks can affect quarterly economic growth calculations. This article was written by Giuseppe Dellamotta at investinglive.com.