U.S. Trade Deficit Widens As Expected in October

Source: Economics Group of Wells Fargo Bank, N.A.Summary The U.S. international trade deficit widened for the second consecutive month in October as import growth outstripped exports. Exports were held back by a decline in natural gas specifically, but there were signs of slower growth beginning to bite, which we expect to remain a headwind for exports into next year. Net exports now look to be a considerable drag on fourth quarter growth. Deficit Widens Further in October The U.S. trade deficit widened for the second straight month to -$78.2 billion in October as import growth (+$2.2 billion) outpaced exports (-$1.9 billion). Despite the sharp widening the past two months, the deficit still sits smaller in October than the average that prevailed over the past 12 months (chart). READ FULL ARTICLE>>