US Trade Deficit Increases 5% In October As Global Demand Slows, Dollar Strengthens

The United States' trade deficit against the rest of the world increased 5% in October to just over $78 billion as global demand appeared to slow for US-made goods and services, which were also disadvantaged by a stronger dollar

WASHINGTON (UrduPoint News / Sputnik - 06th December, 2022) The United States' trade deficit against the rest of the world increased 5% in October to just over $78 billion as global demand appeared to slow for US-made goods and services, which were also disadvantaged by a stronger dollar.

"The goods and services deficit was $78.2 billion in October, up $4 billion from $74.1 billion in September, revised," the Census Bureau and Bureau of Economic Analysis, both units of the US Commerce Department, said in a statement.

The statement showed that US exports fell 0.7% to $256.6 billion while imports rose 0.6% to $334.8 billion.

Global growth is forecast to slow from 6% in 2021 to 3.2% in 2022 and 2.7% in 2023, the International Monetary Fund said in an outlook released in October. The IMF said this is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic.

The Dollar has also appreciated sharply this year, at one point climbing more than 11% since the end of December 2021 against the currencies of the main US trading partners. The value of the dollar increased as the Federal Reserve kept piling on interest rates to curb inflation, expanding at the fastest rate in four decades.