US third-quarter GDP forecasts raised after trade deficit narrows
 "US third-quarter GDP forecasts raised after trade deficit narrows")
US third-quarter economic growth could surprise on the upside after government data on Wednesday showed the goods trade deficit narrowed sharply to a seven-month low in September.
Economists had expected gross domestic product to expand at an annual rate of 1.6 per cent last quarter, according to a Reuters poll. Many, however, raised their forecasts after the Commerce Department reported that the goods trade deficit fell to $58.6 billion from $67.2 billion in August.
Economists now estimate that trade subtracted only one-tenth of percentage point from third-quarter GDP, rather than the about 0.8 percentage point they had previously forecast. Third-quarter GDP estimates were raised by as much as four-tenths of a percentage point to as high as a 2.0 per cent rate. Despite the revisions, growth will still have slowed sharply from the second quarter's brisk 3.9 per cent pace.
Economists had expected gross domestic product to expand at an annual rate of 1.6 per cent last quarter, according to a Reuters poll. Many, however, raised their forecasts after the Commerce Department reported that the goods trade deficit fell to $58.6 billion from $67.2 billion in August.
Economists now estimate that trade subtracted only one-tenth of percentage point from third-quarter GDP, rather than the about 0.8 percentage point they had previously forecast. Third-quarter GDP estimates were raised by as much as four-tenths of a percentage point to as high as a 2.0 per cent rate. Despite the revisions, growth will still have slowed sharply from the second quarter's brisk 3.9 per cent pace.