Thursday, February 9, 2023

US trade deficit mounts its second straight month of growth and widens 5.4% in October

The United States’ deficit in its foreign trade in goods and services widened 5.4% in October from the previous month, reaching $78.2 billion, the Bureau of Economic Analysis (BEA) reported on Tuesday.

This is the second month in a row that the indicator has increased after registering a decline in the previous five months in a fragile global economic context as a result of the war in Ukraine and the last blow of the pandemic.

In the tenth month of the year, imports eased slightly and increased by 0.6% compared to September to $334.8 billion, thus containing runaway inflation (7.7% year-on-year).

Meanwhile, exports again fell 0.7% to $256.6 billion in a context that showed the dollar remained strong.

The deficit in October stood at $78.200 million, an increase of $4,000 from September’s $74.100 million (after revision of figure).

balanced behavior

The average deficit of goods and services rose by 2,500 million to 72,700 million, a measure used by economists to determine the trend, in the average of the previous three months.

Average exports declined by $1.4 billion to $258.9 billion in October, while average imports increased by $1.1 billion to $331.6 billion.

In year-on-year terms, the deficit increased by 19.9%, totaling $136.9 billion, with exports increasing by 19.8% to 415.3 billion and imports increasing by 19.8% to 552,200 million.

Goods exports declined by 3.7 billion to 176 billion in October, while services exports increased by 1.8 billion to 80.6 billion.

In detail, there were declines in exports of supplies and industrial materials (down 2,400 million) and consumer goods (down 2,000 million).

Unequal treatment according to trading partner

As far as imports are concerned, imports of goods increased by 2,400 million to 275,600 million, while that of services decreased by 200 million to 59,200 million.

Imports of industrial supplies and materials (including crude oil and diesel) increased by 1.1 billion, and automotive vehicles and parts by 700 million.

By region, the deficit with the EU widened from 7.1 billion to 23.1 billion in October. Exports decreased by 1.2 billion to 28.8 billion and imports increased by 5.9 billion to 51.9 billion.

Meanwhile, the deficit with China narrowed by 6,000 million to 26,100 million in October. Exports increased by 1.4 billion to 13.6 billion and imports decreased by 4.6 billion to 39.7 billion.

Nation World News Desk
Nation World News Desk
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