The US trade deficit contracted sharply in October as exports expanded, possibly setting up trade to boost economic growth this quarter.
- The Commerce Department stated that the trade gap fell by 17.6% to $67.1 billion.
- The imports expanded by 0.9% to $290.7 billion, but exports rose much more quickly, rising 8.1% to $223.6 billion.
- The report covered a duration that supply chain disruptions had risen significantly hampering trade. Goods are only recognized as imports after they have entered consumption units, warehouses, or foreign-trade areas.
- Meanwhile, US exports have a positive month. Crude oil exports rose by $1.2 billion as food, feed, and beverage exports expanded by $2.1 billion.
- Automobile exports, which had been contained in recent months due to partly supply shortages at US factories, expanded $1.5 billion.
Even though the trade deficit narrowed sharply in October, it had been trading wider for the larger part of the year.
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Source: US Department of Commerce