The U.S. trade deficit narrowed sharply in September to its lowest level in more than five years, fueled by a jump in exports and only modest growth in imports, according to data released Thursday by the Commerce Department’s Bureau of Economic Analysis and Census Bureau.
The trade gap fell 10.9% to $52.8 billion, its smallest reading since June 2020. The result surprised economists polled by Reuters, who had expected the deficit to widen to $63.3 billion. The report’s publication had been delayed by a 43-day government shutdown.
Exports rose 3% to $289.3 billion, led by a 4.9% surge in goods exports to $187.6 billion. Shipments of consumer goods climbed to an all-time high, helping drive the overall increase. Imports, meanwhile, edged up just 0.6% to $342.1 billion. Goods imports rose at the same pace to $266.6 billion, though automotive-related purchases fell to their lowest level since November 2022.
The goods trade deficit shrank 8.2% to $79.0 billion, the narrowest since September 2020.
Economists noted that President Donald Trump’s sweeping tariffs have contributed to large swings in trade flows over recent years, complicating broader readings of economic momentum. Trade subtracted a record 4.68 percentage points from GDP in the first quarter before adding back the same amount in the April–June period.
Before Thursday’s release, the Atlanta Federal Reserve projected third-quarter GDP growth at a 3.5% annualized rate. The government is slated to issue its first official estimate on December 23, after the shutdown postponed several key data releases. The economy grew at a 3.8% pace in the second quarter.
