US: Trade deficit continues to widen in October

The deficit in goods and services with the rest of the world amounted to $78.2 billion, an increase of 5.4%, with a decrease in exports of 0.7% and an increase in imports of 0.6%.

The U.S. trade deficit widened further in October under the combined effect of a drop in exports and a rise in imports, primarily of raw materials, according to data released Tuesday by the department.

The deficit in goods and services with the rest of the world amounted to 78.2 billion dollars (73.4 billion francs), an increase of 5.4% compared to August, with a decrease in exports of 0.7% and an increase in imports of 0.6%.

The US Treasury is taking the opportunity to revise its data for September, with a deficit now estimated at $74.1 billion, against the $73.3 billion originally announced.

For the month of October, the trade deficit is slightly larger than expected by analysts, who expected $77.2 billion, according to the consensus published by briefing.com.

It is the second month in a row that the deficit has grown, while the first months of the year, on the contrary, have been characterized by a continuous reduction in it.

Over the past three months, the average trade deficit is now $72.7 billion, an increase of $2.5 billion, confirming the reversal of the trend compared to the rest of the year.

Year-on-year, the trade deficit for the last 12 months increased by 19.9%, or $136.9 billion, compared to the same data a year earlier.

In detail, merchandise exports decreased by $3.6 billion, primarily due to a decline in natural gas and oil prices, partially offset by an increase in services exports, primarily tourism.

On the import side, the increase in imports of goods was $2.6 billion, driven by both imports of raw materials and auto parts, while imports of services fell, again under the dollar effect.

If China remains America’s number one trading partner, the goods trade deficit with its rival is still shrinking, falling from $32.1 billion in September to $26.1 billion a month later.

The deficit with the EU has increased significantly by $7.1 billion over a month, reaching $23.1 billion in October.

Leave a Comment