10 November 2018

[101118.EN.BIZ] Sino-American Trade Gap Widens as Tariffs Bite US Economy, Slowing Orders


THE US trade deficit has widened while orders for business equipment declined for a second month, adding to signs that an escalating tariff war is starting to constrain economic growth, reports Bloomberg.

The September gap in goods trade rose to US$76 billion from $75.5 billion as gains in imports outpaced exports, US Commerce Department figures showed, with both categories potentially reflecting shipments rushed to beat tariffs between the US and China.

A separate report from the department showed orders at US factories for non-defence capital goods, excluding aircraft, unexpectedly fell last month.

While analysts said the slowdown in business equipment may be natural following several months of strong figures, the figures suggest that investment has less momentum heading into the fourth quarter, after getting a boost earlier in 2018 from tax cuts.

Source : HKSG.

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