US goods trade gap widens to $132.6 billion. Is growth at risk?

The preliminary US goods-trade deficit widened 11.5% in August to $132.6 billion, the Census Bureau said on September 30. Goods imports rose 5.5% to $336.1 billion; shipments of capital goods also increased as companies continued investing in AI infrastructure. Exports rose more modestly.

What it means: Is a bigger trade deficit automatically bad news for the economy? It can subtract from GDP arithmetic when imports exceed exports, but imports also include equipment businesses use to expand. The latest number points to strong demand for imported goods and a possible drag on measured third-quarter growth; it does not, by itself, tell us whether households or businesses are in trouble.