With the value of imports rising by more than the value of exports, the Commerce Department released a report on Friday showing the U.S. trade deficit widened in the month of October.
The report said the trade deficit widened to $63.1 billion in October from a revised $62.1 billion in September. Economists had expected the deficit to widen to $64.8 billion from the $63.9 billion originally reported for the previous month.
The wider deficit came as the value of imports increased by $5.0 billion or 2.1 percent to $245.1 billion, while the value of exports climbed by $4.0 billion or 2.2 percent to $182.0 billion.
The increase in the value of imports reflected notable growth in imports of cell phones and other household goods, computer accessories and industrial supplies and materials.
Meanwhile, significant growth in exports of natural gas, organic chemicals, civilian aircraft and semiconductors contributed to the increase in the value of exports.
“With a slowdown in consumption weighing on goods imports and the recovery in production and exports still catching up, the trade deficit is likely to be little changed over the coming months,” said Michael Pearce, U.S. Senior Economist at Capital Economics.
The report said the goods deficit widened to $81.4 billion in October from $80.8 billion in September, while the services surplus fell to $18.3 billion from $18.7 billion.