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US Narrowing in Trade Deficit May Not Mean Big Boost for Q3 GDP
From wellsfargo.bluematrix.com
The trade deficit narrowed sharply in September as a modest 0.6% gain in imports was more than offset by a 3.0% increase in exports. While it is tempting to see a rebound in exports as a positive development for manufacturing, a word of caution: Of the $8.8 billion monthly increase in goods exports, $6.1 billion of the increase came from exports of non-monetary gold. Non-monetary gold exports (gold for industry/jewelry, not central bank reserves) are largely excluded from GDP calculations by statistical agencies like the BEA. This actually makes a degree of intuitive sense because it is treated as financial asset ... (full story)