U.S. Trade Deficit
The United States October trade deficit dropped to the lowest level since January according to a government report issued Friday. Imports were down by half a percent to $197.4 billion, while exports rose 3.2 percent, to $158.7 billion.
Exports to China reached a high while India and other emerging Asian nations contributed to the bulk of the increase.
Exports of industrial supplies were particularly strong, rising 8%, with chemicals and plastics leading the demand. Food exports also surged. Among the big gains: Soybean exports jumped to almost $2.4 billion, an all-time high, from $1.8 billion in September.
However, the foreign demand for soybeans and corn makes prices higher at home as food manufacturers must now survive in a more competitive market.
“More and more of our exports have started going to the faster-growing regions in Asia, Latin America and Canada,” said Morgan Stanley economist Ted Wieseman. “It highlights that the emerging markets never really had much of a slowdown at all. They’ve continued to outperform throughout the crisis.”
