by Calculated Risk on 12/11/2012 08:30:00 AM
Tuesday, December 11, 2012
Trade Deficit increased in October to $42.2 Billion
The Department of Commerce reported:
[T]otal October exports of $180.5 billion and imports of $222.8 billion resulted in a goods and services deficit of $42.2 billion, up from $40.3 billion in September, revised. October exports were $6.8 billion less than September exports of $187.3 billion. October imports were $4.9 billion less than September imports of $227.6 billion.The trade deficit was smaller than the consensus forecast of $42.8 billion.
The first graph shows the monthly U.S. exports and imports in dollars through October 2012.
![U.S. Trade Exports Imports](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqPSxlldLToC7ZCwfAelilVnxMT5qtVOFnt_mIVzAKAnIEVZXFC4r7DhFaUxcwpm3Swom4V8lROU_n-3mTHVxuxdBv396pOw6JuG3K3wS9Yk7dfAKMlz_swpbkV12AA9Hi1BuNPQ/s320/TradeOct2012.jpg)
Both exports and imports decreased in October. US trade has slowed recently.
Exports are 9% above the pre-recession peak and up 1.0% compared to October 2011; imports are 4% below the pre-recession peak, and down 0.8% compared to October 2011.
The second graph shows the U.S. trade deficit, with and without petroleum, through October.
![U.S. Trade Deficit](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0zm72Mkd9QlZmLWWz7PTICY5MHDLJbFibjFfdl0XIPirf4KfCXt5m9J_wDloGy_dHTddlioevb0O4hp36xr0cfcdBQtB3VesA1mPGM-0b5DI2wt_nxVku5s8veNb2zj0HV1WfzQ/s320/TradeDeficitOct2012.jpg)
Oil averaged $99.75 in October, up from $98.88 per barrel in September. The trade deficit with China increased to $29.5 billion in October, up from $28.1 billion in October 2011. Most of the trade deficit is still due to oil and China.
The trade deficit with the euro area was $8.9 billion in October, up from $7.1 billion in October 2011. It appears the eurozone recession is impacting trade.