Economy blow as US trade deficit grows

The US trade deficit increased in October after exports fell by a larger margin than imports, a sign that slower global growth could weigh on the US economy.

The latest figures show that the trade gap with China hit an all-time high.

The commerce department said the trade deficit grew 4.8% in October from September to $42.2bn (€32.6bn).

Exports dropped 3.6% to $180.5bn (€139.7bn), with sales of commercial aircraft, cars and farm products all declining.

Imports fell 2.1% to $222.8bn (€172.5bn), reflecting fewer shipments of mobile phones, cars and machinery.

A wider trade deficit acts as a drag on growth. It typically means the US is earning less on overseas sales of US-produced goods while spending more on foreign products.

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