U.S. Trade Deficit Increases Dramatically In October

By John S. McClenahen The total U.S. trade deficit for goods and services grew by just over $10 billion in October, the most recent month for which data are available. October's deficit grew to $29.4 billion, compared with $19 billion in September, as imports increased faster than U.S. exports, said the U.S. Commerce Department on Dec. 19. September's trade deficit, however, was unusually low because of the accounting effect of insurance claims paid in the wake of the Sept. 11 attacks on New York and Washington. Indeed, the three-month moving average U.S. trade deficit with the rest of the world is about $25 billion, some $6 billion higher than September's figure. In October, the U.S. exported $77.3 billion in goods and services, while importing $106.8 billion. One encouraging sign: Exports of U.S. goods grew by $1 billion between September and October and imports advanced by only $500 million. The result: a $500 million net decrease in the goods trade deficit.

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