US: Expect narrowing of the total trade balance to -$39.0bn in August - Nomura

Research Team at Nomura, notes that the advance goods trade balance was -$58.4bn in August, a modest narrowing from -$58.8bn in July.

Key Quotes

“The preliminary estimate suggests exports grew by 0.7% m-o-m while imports only increased by 0.4%. Exports have been growing at a steady rate, which is a promising sign that the negative impact of the stronger dollar on US goods is finally starting to wane and global demand is starting to improve.

Given the goods trade balance was little changed from July and our assumption that service imports and exports both declined slightly in August, we forecast a narrowing of the total trade balance to -$39.0bn in August from -$39.5bn.”