The US trade deficit continued to increase
2022.11.30 09:32
The US trade deficit continued to increase
Budrigannews.com – In October, exports decreased as global demand slowed and the dollar strengthened, leading to a sharp increase in the U.S. goods trade deficit.
The Commerce Department reported on Wednesday that the goods trade deficit increased by 7% to $99.0 billion in the previous month.Goods exports decreased by 2.6% to $173.7 billion.
Exports of industrial supplies and materials, such as, decreased.Food and auto parts shipments increased while consumer goods exports plummeted. The dollar has appreciated as a result of the aggressive interest rate hikes implemented by the Federal Reserve to control inflation.goods that cost a lot to buy abroad.
Imports of goods rose 0.9 percent to $272.7 billion. A more modest import/export imbalance was one of the primary drivers of monetary development in the second from last quarter. The sharp increase in the deficit in October suggested that trade could have an impact on GDP this quarter.
After increasing by 0.6% in September, the Commerce Department also reported that wholesale inventories increased by 0.8% in October. After decreasing by 1% in September, retail inventory fell by 0.2 percent. Stocks of motor vehicles rose 0.4%.
Retail inventories decreased by 0.4 percent, excluding automobiles, following a 0.9% decrease in September. GDP is calculated using this component.in the third quarter, inventories were subtracted from GDP growth.
