US Trade Deficit, Hits All-Time High, in September.
On November 4, the Commerce Department announced that the previous trade deficit record of $73.2 billion set in June of this year had been broken.
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On November 4, the Commerce Department announced that the previous trade deficit record of $73.2 billion set in June of this year had been broken.
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ABC reports that the United States' trade deficit hit $80.9 billion in September.
The record high was reached as American exports fell sharply while imports continued to climb despite supply chain disruptions.
Exports reportedly dropped 3%, falling to $207.6 billion.
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Imports increased just 0.6% to $288.5 billion.
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ABC reports that Hurricane Ida had caused drilling and refinery shutdowns, which led to a 15.5% dip in petroleum exports.
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ABC reports that Hurricane Ida had caused drilling and refinery shutdowns, which led to a 15.5% dip in petroleum exports.
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Through September, the overall trade deficit increased 33.1% compared to the same time last year, reaching $836.6 billion.
ABC reports that economists predict that the deficit should start to improve as COVID-19 cases decrease and the supply chain opens back up.
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However, economists warn that improvements in the coming months may be modest.
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We look for the trade balance to remain historically elevated through year-end, but moderation in domestic demand will cool import volumes while steady vaccine diffusion and slower virus spread should underpin stronger export growth, Kathy Bostjancic, Chief U.S. Financial Economist at Oxford Economics, via ABC