Economic data released by the United States on October 28 shows that the trade deficit in goods narrowed sharply in September and retailers' inventories surged. The US trade deficit in goods fell 4.5% to US$79.4 billion in September. Exports in goods increased by 2.7% to US $122 billion, driven by a surge in shipments of food, feed and beverage. Exports of automobiles, consumer goods and capital goods also increased, while exports of industrial supplies declined. Imports fell by 0.2% to US$201.4 billion in September, dragging down imports of industrial supplies, consumer goods and other commodities. Reports from the Commerce Department on retail sales, durable goods orders and housing indicates that the economy has regained its footing, but the gross domestic product (GDP) is still likely to be lower than the department's forecast for the fourth quarter. The US government will release its GDP growth for the third quarter on Tuesday, five days before the US presidential election next Tuesday. "There is still a long way to go before the economy fully recovers and unfortunately the challenges are increasing," said James Knightley, chief international economist at ING in New York.