WASHINGTON: The US’ trade deficit increased less than expected in October, suggesting trade could contribute to economic growth in the fourth quarter.
The Commerce Department said today the trade gap rose 1.7% to US$63.1 billion in October. Data for September was revised to show a US$62.1 billion deficit instead of US$63.9 billion as previously reported. Economists polled by Reuters had forecast the trade shortfall increasing to US$64.8 billion in October.
Imports increased 2.1% to US$245.1 billion. Goods imports gained 2.1% to US$207.8 billion. Exports accelerated 2.2% to US$182.0 billion. Goods exports jumped 3.0% to US$126.3 billion.
There was a drag on gross domestic product in the third quarter for the first time since the second quarter of 2019. The economy grew at a historic 33.1% annualized rate in the July-September period. That followed a record 31.4% pace of contraction in the second quarter.