Trade Deficit Grows More Than Expected As Stronger Dollar Pressures Exports
The U. S. monthly international trade deficit increased in October 2016 according to the U. S. Census Bureau, rising from $36.2 billion in September (revised lower from $36.4 billion) to $42.6 billion in October, higher than the $41.8BN consensus estimate, as exports decreased and imports increased which was to be expected following the recent surge in the US Dollar. The goods deficit increased $6.3 billion in October to $63.4 billion. The services surplus decreased $0.1 billion in October to $20.8 billion.
Breaking down the main trade categories, exports of goods and services decreased $3.4 billion, or 1.8 percent, in October to $186.4 billion. Exports of goods decreased $3.5 billion and exports of services increased $0.1 billion.
The decrease in exports of goods reflected decreases in foods, feeds, and beverages ($1.4 billion), in industrial supplies and materials ($1.0 billion), and in consumer goods ($0.9 billion). The increase in exports of services mostly reflected an increase in transport ($0.1 billion), which includes freight and port services and passenger fares.
This post was published at Zero Hedge on Dec 6, 2016.