The US trade gap narrowed in October on record high in exports. The Commerce Department said the trade deficit fell 5.4 percent to $40.6 billion in October. The previous month’s print was revised up to $43 billion from $41.8 billion in September.
When adjusted for inflation, the trade gap fell from $51.4 billion to $48.3 billion, and this has a direct influence on gross domestic product; and these positive number can suggest that the US will continue to growth this quarter.
Exports increased $192.7 billion, or 1.8 percent, and became the largest factor in the trade deficit. The shale boom contributed quite a bit as exports of petroleum to China hit a record high. The trade deficit between the US and China also narrowed. Exports to Mexico and Canada increased to all-time highs, as well.
Imports rose only .4 percent to $233.3 billion in October. The data suggests that companies are not willing to buy products overseas as consumer spending in the US is still anemic.
Canada when from a trade deficit of $303 million in September to a $75 million surplus in October on declining imports. Imports declined by 1.2 percent, but exports also declined .3 percent in October.
Canadian imports declined to $40.4, and exports decreased to $40.5 billion.