U.S. GDP on track to grow at 1.9%

The trade balance in the United States recorded -$42.5 billion in September increased to -$43.9 billion in October. At a disaggregate level, export of the food and beverages declined by 5.5%, consumer goods by 3.0%, industrial supplies by 4.6 in October. As a result, the total exports in nominal term reduced by 1.4% month on month in October against 1.4% increased in previous month. 

In contrast, the nominal imports were recorded a marginal fall of 0.6% month on month. Due to soften international demand, the net exports are reduced and thereby wider the trade deficit. 

"Revisions to prior month's data back to April suggest little change to our current Q3 GDP tracking estimate of 2.0%. October data imply a larger drag from net trade in Q4 than we had previously expected. As a result, our Q4 GDP tracking estimate fell two-tenths to 1.9%", estimates Barclays.