US Trade Deficit Increased in October

The US Census Bureau, announced today that the US trade deficit in goods and services increased to $48.7 billion in October from $44.9 billion in September, a nine-month high on record imports, that reflect steady domestic demand and rising oil prices. Exports of goods and services were unchanged at $195.9 billion in October as shipments of soybeans fell $1.4 billion and civilian aircraft dropped by $1.1 billion. Imports increased to $240.3 billion from $240.8 billion in September. Imports from China and Mexico were the highest on record in October. So far this year, the US is running a trade deficit of $462.9 billion, up 11.9% from January through October 2016.

The US imported more barrels of crude oil in October compared with the prior month, and at a higher average price. The trade deficit with Mexico surged 15.9 percent to $6.6 billion. Increased imports of consumer goods, including cellphones, also contributed to the month’s rise. The politically sensitive US – China trade deficit increased 1.7 percent to $35.2 billion and is up 7% this year to $309 billion. The trade deficit with Mexico surged 15.9 percent to $6.6 billion. Economists polled by Reuters, had forecast the trade deficit widening to $47.5 billion in October after a previously reported $43.5 billion deficit the prior month.

Monthly Trade Highlights

Exports of goods and services were unchanged at $195.9 billion in October.

Exports of goods were $130.3 billion in October, down from $130.6 billion in September.

Exports of industrial supplies increased by $2.6 billion to their highest level since November 2014.

Exports of petroleum were the strongest in three years.

October exports of services ($65.6 billion) were the highest on record.

October imports of goods and services ($244.6 billion) were the highest on record.

October imports of goods ($199.4 billion) were the highest since October 2014 ($200.1 billion).

October imports of services ($45.2 billion) were the highest on record.

For goods, the deficit was $69.1 billion in October, up from $65.2 billion in September.

For services, the surplus was $20.3 billion in October, down from $20.4 billion in September.

October exports to Mexico ($22.1 billion) were the highest since October 2014 ($22.3 billion).

October imports from Mexico ($28.7 billion) were the highest on record.

October exports to China ($13.0 billion) were the highest since December 2013 ($13.0 billion).

October imports from China ($48.2 billion) were the highest on record.

October petroleum exports ($12.2 billion) were the highest since September 2014 ($12.2 billion).

The October import average price per barrel of crude oil ($47.26) was the highest since August 2015 ($49.33).

The October figures show surpluses, in billions of dollars, with South and Central America ($3.9), Hong Kong ($2.3), Brazil ($1.1), Singapore ($0.7), Saudi Arabia ($0.3), and United Kingdom ($0.2). Deficits were recorded, in billions of dollars, with China ($31.9), European Union ($12.0), Mexico ($6.0), Japan ($5.9), Germany ($5.3), Italy ($2.7), South Korea ($2.7), India ($2.1), Canada ($1.9), OPEC ($1.6), France ($1.6), and Taiwan ($1.6).

The balance with members of OPEC shifted from a surplus of $0.6 billion to a deficit of $1.6 billion in October. Exports decreased $0.9 billion to $4.3 billion and imports increased $1.3 billion to $5.9 billion.

The deficit with China increased $2.1 billion to $31.9 billion in October. Exports decreased $0.8 billion to $10.6 billion and imports increased $1.2 billion to $42.5 billion.

The deficit with the European Union decreased $2.5 billion to $12.0 billion in October. Exports increased $1.4 billion to $25.0 billion and imports decreased $1.1 billion to $37.0 billion.

Latest U.S. International Trade in Goods and Services report is available at bea.gov