US: Goods trade deficit and new home sales in the limelight - TDS

Research Team at TDS, suggests that the US advance goods trade balance is expected to deteriorate in September, with the market looking for the deficit to widen from $59.2bn to $60.5bn.

Key Quotes

“TD is slightly more bearish and projects the goods deficit will increase to $61.0bn, with higher imports the larger factor behind the move.

Both TD and the market look for September new home sales to decline by 1.5% m/m to an annualized 600k; we expect a more pronounced pullback in the West while the South may see some weakness from the Louisiana floods. Lastly, the market looks for wholesale inventories to rise by 0.1% m/m in September after two consecutive declines.”