WASHINGTON – The U.S. international trade deficit declined by $5.9 billion to $38.7 billion in October, the lowest deficit since July, as exports of services jumped to a record and imports fell, the Commerce Department reported Friday.
The September trade deficit was revised higher to $44.6 billion from $44.0 billion reported last month.
October exports increased to $158.7 billion from $153.8 billion last month. It was the largest level of exports since August 2008, while exports of services alone, totaling $46.4 billion, was the highest on record. The service export gains were led by business services, travel and freight transportation. Exports to China reached a record high of $9.3 billion.
U.S. imports fell by $900 million to $197.4 billion. Imports fell in September by $1.5 billion. This was the first back-to-back monthly decline in imports since April and May 2009. Leading the import decline, demand for industrial supplies and materials and capital goods fell. Imports for consumer goods increased.
Economists polled by Thomson Reuters expected a trade deficit of $43.8 billion, according to the median estimate. For the 12 months ending in October, the trade deficit increased $6.4 billion. The trade deficit is $20.7 billion below the October 2008 level.
Trade in both imports and exports with the European Union were the highest since October 2008. The trade deficit with the EU increased by 17.4% to $7.1 billion.
The trade deficit with China decreased by 8.3% to $25.5 billion in October as imports slipped. However, year-to-date through October, the China trade deficit has increased by a fifth over the same period in 2009.
October petroleum imports were the lowest since November 2009. The average price for an imported barrel of crude oil was $74.18 for the month, the highest since May.
