US records trade deficit of $64.3Bln in October: Commerce Dept.
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In the month of September, the deficit was recorded at $61.2 billion.
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In this April 9, 2021 photo, cargo containers are shown stacked near cranes at PortMiami in Miami (AP)
The Commerce Department reported on Wednesday that the US trade deficit expanded by a notable 5% in October due to a decline in exports. This development has the potential to be a factor slowing down the economy in the final quarter of the year.
According to data from the Commerce Department's Census Bureau, the trade deficit reached $64.3 billion at the close of October, compared to a revised figure of $61.2 billion in September.
A survey of economists conducted by US media showed that the anticipated deficit for October was $64.2 billion.
The data further revealed a 1% decline in exports to $258.8 billion, while imports of goods increased by 0.2% to $323 billion, resulting in the rounded-up trade deficit of $64.3 billion.
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The US has sustained trade deficits since 1976, primarily attributed to substantial imports of oil and consumer goods.
Whether future increases in US liquefied natural gas (LNG) production and a shift to LNG in commercial vehicles contribute to reducing this deficit is up to debate.
Earlier this month, Federal Reserve Chairman Jerome Powell stated on Friday that the Federal Reserve remains prepared to increase interest rates if necessary.
If this increase occurs, it would result in the domestic currency appreciating, with higher return on US assets and a wider flow of foreign capital.
This stronger currency may contribute to a reduction in the trade deficit as it makes imports relatively more affordable and exports comparatively more expensive.
Starting from March 2022, the Fed has implemented 11 rate hikes, elevating its benchmark rate from a modest 0.25% to 5.5% per annum. This marks the highest level in 22 years.
