U.S. trade deficit in October rises to $48.7 billion on record imports
WASHINGTON — Record imports lifted the U.S. trade deficit to $48.7 billion in October, highest since January.
The Commerce Department said Tuesday that the trade gap rose 8.6 percent in October from $44.9 billion in September. Imports hit a record $244.6 billion in October, and exports were unchanged at $195.9 billion.
A trade deficit means that the United States is buying more goods and services from other countries than it is selling them. A rising trade gap reduces U.S. economic growth.
President Donald Trump views America's massive trade deficits as a sign of economic weakness. He blames them on bad trade deals and abusive practices by China and other trade partners. Conventional economists argue that trade deficits are largely caused not by flawed trade agreements or cheating by particular countries but by a bigger economic force: Americans spend more than they produce, and imports have to fill in the gap.
So far this year, the United States is running a trade deficit of $462.9 billion, up 11.9% from January through October 2016. U.S. exports are up 5.3% this year; a weaker dollar has made U.S. goods less expensive overseas. Imports are up 6.5% the first 10 months of 2017.
Learn more: Best travel insurance
The politically sensitive trade deficit in goods with China rose 1.7% to $35.2 billion from September to October and is up 7% this year to $309 billion.
In October, the United States ran a surplus of $20.3 billion with the rest of the world in services such as banking in tourism. But that was overwhelmed by a $69.1 billion deficit in the trade of goods.
Crude oil imports were up $1.5 billion in October. Imports of drilling and oilfield equipment climbed by $304 million, and imports of cell phones rose by $303 million.
More:Wall Street is upbeat on bank stocks in 2018
More:A Foolish Take: Farmland is really expensive right now
More:Insider Q&A: Economist Diane Swonk on what's ahead in 2018