Sunday 1 February 2015

Economy blow as trade deficit grows

Published 11/12/2012 | 14:24

The latest figures show there were fewer shipments of mobile phones, cars and machinery imported into the US

The US trade deficit increased in October after exports fell by a larger margin than imports, a sign that slower global growth could weigh on the US economy.

The latest figures show that the trade gap with China hit an all-time high.

The commerce department said the trade deficit grew 4.8% in October from September to 42.2 billion US dollars (£26.2 billion).

Exports dropped 3.6% to 180.5 billion US dollars (£112 billion), with sales of commercial aircraft, cars and farm products all declining.

Imports fell 2.1% to 222.8 billion US dollars (£138 billion), reflecting fewer shipments of mobile phones, cars and machinery.

A wider trade deficit acts as a drag on growth. It typically means the US is earning less on overseas sales of US-produced goods while spending more on foreign products.

Press Association

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