U.S. Trade Deficit Shrinks in October


U.S. trade deficit narrowed in October to the lowest level of the year, reflecting a drop in imports.

The trade deficit shrank 1.6 percent to $43.5 billion. That's down from September's revised figure of $44.2 billion.

In October, the goods deficit decreased $0.7 billion from September to $58.8 billion, and the services surplus was virtually unchanged at $15.3 billion. Exports of goods decreased $1.5 billion to $127.8 billion, and imports of goods decreased $2.2 billion to $186.6 billion. Exports of services were virtually unchanged at $51.4 billion, and imports of services increased $0.1 billion to $36.1 billion.

The September to October decrease in exports of goods reflected decreases in industrial supplies and materials ($1.3 billion); consumer goods ($0.6 billion); foods, feeds, and beverages ($0.1 billion); and automotive vehicles, parts, and engines ($0.1 billion). Increases occurred in capital goods ($0.5 billion) and other goods ($0.2 billion).

The September to October decrease in imports of goods reflected decreases in industrial supplies and materials ($3.6 billion); automotive vehicles, parts, and engines ($0.6 billion); and other goods ($0.1 billion). Increases occurred in capital goods ($1.1 billion); consumer goods ($0.7 billion); and foods, feeds, and beverages ($0.2 billion).

The October 2010 to October 2011 increase in exports of goods reflected increases in industrial supplies and materials ($8.5 billion); capital goods ($3.8 billion); automotive vehicles, parts, and engines ($1.5 billion); consumer goods ($0.8 billion); and foods, feeds, and beverages ($0.1 billion).

The October 2010 to October 2011 increase in imports of goods reflected increases in industrial supplies and materials ($12.0 billion); capital goods ($4.4 billion); automotive vehicles, parts, and engines ($2.2 billion); foods, feeds, and beverages ($1.7 billion); and consumer goods ($0.9 billion). A decrease occurred in other goods ($0.1 billion).

The October figures show surpluses with Hong Kong, Australia, Singapore, and Egypt. The biggest deficits were recorded with China, OPEC, European Union, Japan, Mexicoand Germany.


TradingEconomics.com, U.S. Census Bureau
12/9/2011 1:51:36 PM