New York
CNN Business
—
The US trade deficit in October was only slightly higher than the previous month, to $78.2 billion.
The latest data grew only 5.4%, less than half the rate of increase from the revised data in September, when the trade deficit widened 12.7% to $74.1 billion.
One strong dollar and weaker global demand weighed on exports both months. A strong dollar makes American goods more expensive for foreign buyers, and it also makes imports more affordable for American buyers. But economic slowdown in overseas markets also hit US exports in the most recent reports.
The latest report showed that exports fell 0.7 percent in October from the previous month and were down nearly 2 percent from the record export levels set in August. Much of the decline was in commodity exports. , instead of services, down 4.4% from August.
Oil prices have been falling since the start of the year, according to data published in the report. The average price of imported crude oil in the month was 82.05 USD/barrel, down 5.7% compared to September and down 21.7%. from its peak in June.
But the United States now exports more dollar-denominated petroleum products than it imports. So, lower crude oil prices no longer help reduce the trade deficit as it once did, when imports of crude oil and petroleum products outstripped exports.
The deficit in goods movement between the United States and China narrowed significantly in the latest report, falling 22.6% to $28.9 billion from $37.3 billion, a factor that led to an increase a smaller increase in the trade gap.
While much of that contraction was due to a 31.3% increase in US goods exports to China compared to September, a 9.5% drop in US imports of Chinese goods was also a factor in the deficit. The trade deficit between the two countries decreased.
