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U.S. Trade Deficit Widens More Than Expected To $48.7 Billion In October

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With imports rising and exports edging lower, the Commerce Department released a report on Tuesday showing the U.S. trade deficit widened more than expected in the month of October.

The report said the trade deficit widened to $48.7 billion in October from a revised $44.9 billion in September. Economists had expected the deficit to widen to $47.5 billion.

The bigger than expected increase in the size of the deficit was primarily due to a jump in the value of imports, which surged up by 1.6 percent to $244.6 billion.

Imports of crude oil shot up by $1.5 billion, while imports of consumer goods and other goods also showed notable increases.

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.

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

"While survey measures of export orders appear to have peaked for now, they remain consistent with stronger export growth," said Michael Pearce, U.S. economist at Capital Economics.

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."

by RTT Staff Writer

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