U.S. trade shortfall widens in October amid broad-based weakness in exports

US trade gap widens in October on record imports

Goods & Services Deficit Widened to $48.7 Billion in October

This was the highest level since January.

Increased volumes of goods imports accounted for the bulk of the worsening, rising by $3.5bn to reach $199.4bn, with those of crude oil jumping by $1.5bn.

Trade deficit in the USA widened in October, coming a bit more subdued than expected.

America's shortfall in trade with the rest of the world worsened in October, amid a broad-based drop in exports and increased purchases of industrial supplies and consumer goods from overseas.

The goods deficit increased 5.9% to $69.1 billion, while the services surplus shrunk slightly to $20.3 billion.

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On the other hand, the Commerce Department said the value of exports edged down by less than a tenth of a percent to $195.9 billion. Imports are up 6.5 percent the first 10 months of 2017.

Imports of mobile phones rose US$300 million as did transportation services.

It was the second straight month in which the United States trade gap widened, driven in part by goods imported from China of US$48.2 billion, an all-time high, bringing the U.S. trade deficit with that country to US$31.9 billion.

"The October trade balance report was weaker than we had anticipated, and coupled with the downward revision to September's trade balance, implies a lower contribution from the net exports sub-component to Q4 GDP growth", said Barclays in a research report.

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