Mobile  |  About us  |  Photos  |  Videos  |  Subscriptions  |  RSS Feeds  |  Today's Paper  |  Classifieds  |  Contact Us
The Daily Star
SATURDAY, 19 APR 2014
05:00 AM Beirut time
Weather    
Beirut
20 °C
Blom Index
BLOM
1,214.01down
International
Follow this story Print RSS Feed ePaper share this
U.S.trade deficit at 10-month low in October, China imports hit high
Reuters
In this Dec. 8, 2011 photo, a container ship is docked at the Port of Oakland in Oakland, Calif. The U.S. trade deficit narrowed in October to its lowest point of the year as Americans bought fewer foreign cars and imported less oil. Exports of American-made autos also fell. (AP Photo/Paul Sakuma)
In this Dec. 8, 2011 photo, a container ship is docked at the Port of Oakland in Oakland, Calif. The U.S. trade deficit narrowed in October to its lowest point of the year as Americans bought fewer foreign cars and imported less oil. Exports of American-made autos also fell. (AP Photo/Paul Sakuma)
A+ A-

WASHINGTON: The U.S. trade deficit narrowed in October to its lowest in 10 months, but imports from China hit a record high, a government report showed on Friday.

The trade gap totaled $43.5 billion, in line with a consensus estimate from analysts before the report. However, the Commerce Department revised its estimate of the September trade deficit to $44.2 billion from $43.1 billion.

As a result, the October trade gap narrowed 1.6 percent from September, instead of widening, as most analysts expected.

Both U.S. imports and exports declined in October, in a possible sign of weakening demand in the United States and abroad.

But a smaller trade deficit is positive for fourth-quarter economic growth as it suggests more domestic demand is being met by U.S. production.

Also, both imports and exports of capital goods set records in October, suggesting that businesses are gearing up operations.

U.S. stock index futures rose Friday after EU leaders agreed on measures that partially address the region’s crippling sovereign debt crisis. The euro rose against the dollar, while U.S. government debt yields rose.

U.S. exports to the 27-nation EU rose 1 percent in October to $23.4 billion, while imports from the community increased 6.3 percent to $31.4 billion.

“Exports to Europe are bound to weaken substantially, while imports will pick up steam as U.S. companies rebuild inventory after the unexpected decline in the third quarter,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics, Valhalla, New York.

Overall U.S. imports fell 1 percent to $222.6 billion, led by a $3.6 billion drop in industrial supplies and materials. The average price for imported oil fell for a fifth consecutive month to $98.84 per barrel, from its May peak of $108.70.

The drop in the overall trade deficit “will prove temporary, because oil prices have risen significantly since October,” Shepherdson said.

Despite the overall import decline, imports of capital goods and food, feeds and beverages increased to records in October.

Imports from China rose to a record $37.8 billion and imports from Japan increased to $12.3 billion, the highest since April 2008.

U.S. exports fell 0.8 percent to $179.2 billion, led by a $1.3 billion drop in industrial supplies and materials. The biggest monthly decline in that category was for non-monetary gold, which tumbled 25 percent to $3.5 billion.

However, for the first 10 months of 2011, non-monetary gold exports totaled $27.8 billion, compared to some $14.8 billion in the same period last year.

American exports to China increased to $9.7 billion, the highest since December.

The U.S. trade deficit with China was unchanged in October at $28.1 billion, but remained on track to surpass the annual record of about $272 billion set in 2010.

 
A version of this article appeared in the print edition of The Daily Star on December 10, 2011, on page 5.
Home International
 
     
 
US trade gap narrows / United States of America
Advertisement
Comments  

Your feedback is important to us!

We invite all our readers to share with us their views and comments about this article.

Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.

comments powered by Disqus
Advertisement


Baabda 2014
Advertisement
Follow us on Facebook Follow us on Twitter Follow us on Linked In Follow us on Google+ Subscribe to our Live Feed
Multimedia
Images  
Pictures of the day
A selection of images from around the world- Friday April 18, 2014
View all view all
Advertisement
Rami G. Khouri
Rami G. Khouri
Why Israeli-Palestinian talks fail
Michael Young
Michael Young
Why confuse gibberish with knowledge?
David Ignatius
David Ignatius
Echoes of 1914 characterize the Ukraine crisis
View all view all
Advertisement
cartoon
 
Click to View Articles
 
 
News
Business
Opinion
Sports
Culture
Technology
Entertainment
Privacy Policy | Anti-Spamming Policy | Disclaimer | Copyright Notice
© 2014 The Daily Star - All Rights Reserved - Designed and Developed By IDS