US October's Trade Deficit at 10-Year High
The US trade deficit rose to a 10-year high in October. The US Commerce Department reported, that the trade deficit increased 1.7% to $55.5 billion. The indicator hit the highest level since October 2008. Economists had forecast the overall trade deficit rising to $55.0 billion in October. When adjusted for inflation, the goods trade deficit increased to $87.9 billion in October from $87.2 billion in September.
The trade gap has now widened for a five straight months. Meanwhile, data for September was revised to show the deficit rising to $54.6 billion instead of the previously reported $54.0 billion. It was also reported, that the goods trade deficit with China increased 7.1% to a record $43.1 billion in October.
Exports of goods and services slipped 0.1% to $211.0 billion in October. Soybean exports, which have been targeted by China in the trade dispute, dropped $0.8 billion. Imports of goods and services increased 0.2% to $266.5 billion, an all-time high. Consumer goods imports increased by $2.0 billion to a record high of $57.4 billion, boosted by a $1.5 billion gain in imports of pharmaceutical preparations.