US records further widening of trade deficit in October

Imports and Exports | | MIC Customs Solutions |

The US trade deficit widened to a four-month high in October 2016, according to the latest official data.

The US saw a 17.8 per cent jump in its trade deficit during October 2016, with the gap growing to a four-month high.

New data from the US Commerce Department has revealed a trade deficit of $42.6 billion (€39.74 billion) for October, up from $36.2 billion in September. This was roughly in line with analysts' expectations.

Imports for October increased by 1.3 per cent to $229 billion, the highest level since August 2015, as the country purchased more drugs, computer accessories, mobile phones and other consumer goods from overseas.

Exports, meanwhile, decreased by 1.8 per cent, the most since January, to $186.4 billion. This is partly because of the current strength of the US dollar, which is making American goods more expensive to purchase internationally.

The findings will strengthen expectations that international trade will continue to act as a drag on US economic growth for some time to come.

Jay Bryson and Tim Quinlan, economists at Wells Fargo Securities said: "The primary rationale for that is the fact that growth in the US is still relatively steady, and we are forecasting steady growth in consumer spending; the global economy is still on shakier footing."