October Trade Deficit Plagued by China and Oil Imports
The U.S. trade deficit, also known as the international trade balance, rose by 4.9% to $42.24 billion in October. The Commerce Department reported that the September trade deficit was revised slightly lower to $40.28 billion. The deficit with China was running high, and fuel consumption and the cost component rose as well.
Bloomberg was calling for a $42.8 billion deficit and Dow Jones was calling for a consensus target of $42.1 billion for the month. Exports fell by almost $7 billion month-over-month to $180.51 billion, and imports fell by almost $5 billion month-over-month to $222.75 billion. The Commerce Department also showed that the October gap in trading with China was higher by about 1.4%, or a record $29.5 billion in October.
The deficit with Japan also rose, by a whopping 45% to $7 billion. Crude oil imports were on average $0.87 per barrel higher at $99.75 in October, with the tab rising to $25.9 billion from $24.4 billion the prior month.
The Commerce Department's reading on International Trade is the monthly balance of tangible goods and services and broken out by exports and imports.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Economy, International Markets, Oil & Gas