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US trade deficit rises 1.1% in October, volume falls
Posted: 11 December 2008 2245 hrs

 
 
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WASHINGTON: The US trade deficit rose 1.1 percent in October to 57.2 billion dollars, as a steep decline in exports offset a drop in imports and the gap with China widened, government data showed on Thursday.

The increase in the trade gap contrasted with analysts' expectations of a drop to 53.5 billion dollars.

The politically-sensitive trade deficit with China increased marginally to 28 billion dollars in October from 27.8 billion dollars the previous month, the Commerce Department report showed.

Total trade volume fell 1.7 percent in October, with declines in both imports and exports, signalling the deepening economic crisis in the United States and abroad.

October imports were down 1.4 percent from September to 208.9 billion dollars while exports dipped 2.4 percent to 151.7 billion dollars.

It marked the third straight month of declining exports and imports, underscoring weakening US international trade amid the global slowdown from record peaks in July, when exports hit 168.1 billion dollars and imports 229.4 billion dollars.

The trade deficit in goods narrowed by less than one percent to 69.8 billion dollars in October, while the trade surplus in services narrowed by three percent to 12.6 billion dollars.

Exports of civilian aircraft were down 28 percent to 1.6 billion dollars, which could be partly attributed to a Boeing strike that ended late October.

Net imports of petroleum in October rose by 2.5 percent to 32.7 billion dollars.

Auto exports dropped by 2.3 percent to 10 billion dollars, and imports fell by five percent to 17.5 billion dollars, both figures reflecting an upward revision of September data.

The trade deficit with Canada, the US largest trading partner, narrowed by 21 percent to six billion dollars in September. The gap with Mexico, the second largest trading partner, narrowed by 2.8 percent to 4.8 billion dollars. - AFP/de

 


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