Domestic Demand Boosts U. S. Imports

Solid domestic demand in the U. S. has caused import growth to outpace exports for the most of the past year, according to Wells Fargo.

Analysts pointed out that with consumption slowly rebalancing back toward services spending, imports should eventually slow and provide some relief at U. S. largest ports.

Industrial supplies exports plunged 10.5%, in real terms, which was the largest monthly decline since 2008.

Exports plunged 3.0% in September, which more than offset the 0.6% gain in import growth and caused the U.S. trade deficit to widen to a record deficit of $80.9 billion.

Weakness in exports was broad based with every major category of goods having moved lower during the month, with the exception of consumer goods where a $1.5 billion gain in pharmaceutical preparations prevented a decline in the overall category.