Sharp reduction in the US trade deficit in October

(Washington) The US trade deficit narrowed sharply in October thanks to a rebound in exports and after a record deficit in September when US companies scrambled to restock their inventories.



The US goods and services deficit with the rest of the world was $ 67.1 billion, down 17.6% from the previous month.

Imports rose 0.9% to $ 290.7 billion while exports, which had declined in September, rebounded 8.1% to $ 223.6 billion.

Analysts, however, expected a lower deficit (66.8 billion).

And, cumulated over the first ten months of the year, the deficit widens by 29.7% compared to the same period of 2020. The past year was marked by a historic recession caused by the COVID-19 pandemic.

In October alone, the world’s largest economy exported more industrial products ranging from capital goods and consumer goods to cars, automotive equipment and crude oil.

On the import side, the United States was less fond of industrial materials and semiconductors in particular. In September, companies had imported heavily to replenish their stocks as the holiday season approached.

The record trade deficit recorded in September was revised up to 81.4 billion against 80.9 billion initially announced.


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