Oct. Trade Deficit $42.6B, Up from Sept.’s $36.2B

WASHINGTON – The U.S. international trade gap widened in October to a larger-than-expected $42.6 billion from a slightly revised $36.2 billion gap in September, with exports down 1.8% and imports up 1.3%, data released by the Commerce Department Tuesday morning showed.

The trade gap was expected to widen to $42.0 billion in October, with those forecasts pinned on a wider Census goods gap at $62.0 billion in the advance estimate. That measure came in close to the advance estimate at $61.9 billion, wider than the $56.0 billion Census gap in September. The overall BOP goods gap widened to $63.4 billion from $57.1 billion in September.

In addition, the services surplus narrowed modestly to $20.8 billion from $20.9 billion.

The petroleum gap widened to $5.8 billion from $5.2 billion, while the nonpetroleum gap widened to $56.1 billion after narrowing to $50.7 billion in September.

Exports were pulled lower by foods, industrial supplies, autos, and consumer goods, offset by a very modest rise in capital goods.

Imports, however, were lifted by a sharp gain in consumer goods and solid gains in capital goods and foods that offset declines in autos and industrial supplies.

The trade gaps with the Canada, Mexico, the EU, and Japan all widened in the month, while the gap with China narrowed as exports to that country were the highest since Dec. 2013. Imports from China were also strong, the highest since Oct. 2015, suggesting increased trade flows.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.
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