Published: Tue, December 05, 2017
Finance | By Loren Pratt

US Trade Deficit Widens More Than Expected To USD48.7 Billion In October

US Trade Deficit Widens More Than Expected To USD48.7 Billion In October

October imports were $244.6 billion, $3.8 billion more than September imports.

Exports of goods decreased just over 0.2% to $130.3 billion in October.

President Donald Trump views America's massive trade deficits as a sign of economic weakness. Imports increased $146.6 billion or 6.5%.

A sharp increase in exports of industrial supplies and materials was more than offset by notable declines in exports of soybeans and civilian aircraft.

He added, "Together with the depreciation of the dollar this year, we think export growth should rebound over the coming months, suggesting that net trade should be broadly neutral for economic growth next year".

Worldwide trade data can be volatile from month to month. The overall trade deficit widened 11.9% so far this year compared with the same period in 2016. In the first 10 months of 2017, the value of USA imports rose 6.5% and exports increased 5.3% compared with the first 10 months of 2016.

Strong U.S. consumer spending, buoyed by a tight labor market and sky-high confidence, has also helped drive the recent ramp-up in imports.

The trade deficit for the month was pushed by rising oil prices, as well as record imports from China ahead of the holiday shopping season, the Commerce Department said in its monthly report.

Exports were unchanged at US$195.9 billion, but services exports were also the highest on record at US$65.6 billion.

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