Washington (AFP) – The US trade deficit widened in October but remained smaller than a year earlier, and included a big jump in exports to China, especially cars, the Commerce Department said Tuesday.
The overall trade gap for the month grew nearly 18 percent to $42.6 billion, an increase of $6.4 billion over September. The level was about in line with analyst expectations, which predicted a deficit of $41.8 billion.
The deficit was 2.1 percent lower than October 2015, and for the year-to-date the trade gap is tracking about $10 billion lower than the first 10 months of 2015.
Trade with China stood out as US exports in the latest month reached their highest level since December 2013 at $13 billion. However, imports from China were at their highest since October of last year at $44.3 billion.
The deficit with China shrank 4.2 percent to 31.1 billion, in part due to a 27 percent rise in US passenger car exports to $939 million.
Total US exports fell $3.4 billion to $186.4 billion as international sales of soybeans and corn fell 30 percent and 36 percent, respectively. Civilian aircraft engine sales were up nearly 5.0 percent to $3.2 billion but exports of aircraft fell 9.5 percent $5.3 billion.
Americans imported 24 percent fewer organic chemicals, valued at $1.8 billon for the month, and saw crude imports nudge 2.4 percent upwards to $9.1 billion. But they also imported 14 percent more computer accessories and 8.0 percent more pharmaceutical products, valued at $9.1 billion.
The surplus in services was about steady, with exports of $63.3 billion and imports of $42.4 billion. But the goods deficit remains substantial: exports fell in the month to $123.1 billion while imports rose slightly $186.5 billion.
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