Prior month $-57.3BCurrent month -$60.1B vs -$83.49 last month. Estimate -$60.9BGood trade balance -$88.7B increasing the deficit by $4.1 billion from the prior monthServices surplus $28.4 billion up $1.6 billion from the prior monthExports $320.9 billion, +2.0% or +$6.2 billionimports $381.2 billion, +2.3% or + $8.7 billion
A larger (wider) trade deficit generally subtracts from GDP, while a smaller (narrower) deficit adds to GDP growth. This is because in the GDP calculation, net exports (exports minus imports) are included, so when imports exceed exports by a greater amount, that gap reduces overall output. Conversely, when the deficit shrinks—either because exports rise or imports fall—the drag on GDP lessens or turns into a positive contribution.
This article was written by Greg Michalowski at investinglive.com.