US trade deficit widens in October on weak exports
THE US trade deficit widened more than expected in October as exports declined, likely positioning trade to be a drag on economic growth in the fourth quarter.
The trade deficit increased 5.1 per cent to US$64.3 billion, the Commerce Department’s Census Bureau said on Wednesday (Dec 6). Data for September was revised to show the trade gap rising to US$61.2 billion instead of US$61.5 billion as previously reported.
Economists polled by Reuters had forecast the trade deficit increasing to US$64.2 billion in October.
Exports of goods and services fell 1.0 per cent to US$258.8 billion. Goods exports decreased 1.8 per cent to US$173.5 billion. Consumer goods exports decreased US$2.1 billion, led by gem diamonds and pharmaceutical products. Exports of motor vehicles, parts and engines decreased US$0.9 billion.
But exports of industrial supplies and materials increased US$1.2 billion. At US$51.2 billion, capital goods exports were the highest on record. Exports of services rose US$0.6 billion to US$85.3 billion, lifted by transport, financial and other business services. But travel services exports fell.
Imports of goods and services gained 0.2 per cent to US$323.0 billion. Goods imports edged up 0.1 per cent to US$263.3 billion, potentially flagging softening domestic demand amid higher interest rates.
SEE ALSO
Capital goods imports increased US$1.8 billion amid rises in computers, drilling and oilfield equipment. Imports of motor vehicles, parts and engines fell US$1.0 billion.
Imports of services increased US$0.2 billion to US$59.8 billion, supported by a rise in travel.
Trade was neutral to the economy’s 5.2 per cent annualised growth rate in the third quarter. Growth estimates for the fourth quarter are mostly below a 2-per cent pace. REUTERS
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