Last Update: 06-Dec-18 18:22 ET
- The U.S. trade deficit was $55.5 billion in October (Briefing.com consensus -$54.7 billion) versus a downwardly revised $54.6 billion (from -$54.0 billion) in September.
- Exports in October were $0.3 billion less than September exports. That downturn was driven by a $0.7 billion decrease in exports of foods, feeds, and beverages, and a $0.5 billion decrease in exports of capital goods.
- Imports in October were $0.6 billion more than September imports. The increase was driven by a $2 billion increase in consumer goods, the bulk of which flowed from a $1.5 billion increase in pharmaceutical preparations. Capital goods imports decreased by $3.2 billion.
- The deficit with China increased $0.7 billion in October to $38.2 billion. In the third quarter, the goods and services deficit with China increased $10.3 billion to $95.9 billion.
- The real trade deficit in October was $87.88 billion, up 3.0% from the third quarter average, which will be viewed as a negative input for Q4 real GDP forecasts.
- The key takeaway from the report is that it doesn't reflect any improvement in the U.S trade deficit despite the tariff actions. The goods and services deficit has increased by $51.3 billion year-to-date, or 11.4%, from the same period in 2017.