There was an unexpected drop in the trade deficit of the United States in October to a level which was lowest in over a year as less money was invested by Americans in imports of automobiles, as well as, consumer goods such as mobile phones and toys, as per the data released by the government a day before.
The main goal of the American President’s aggressive trade agenda is to reduce the deficit. The drop was a reflection of the drop in the global exchange of goods and services as the economy across the world declines. However, it could be helpful in lifting the economic growth of the United States in the last quarter of this year as deficits are deducted from the gross domestic product.
There is a continuing decline in trade with China as the two largest economies of the world are engrossed in maintaining heavy tariffs on goods produced by each other, as per the monthly report from the Commerce Department report.
Overall, the trade deficit dropped by 7.6 percent to US 47.2 billion dollars which is equivalent to S 64.3 billion dollars in October which is less than the expectations of the economists and the lowest level since May of 2018 i.e. from the US 51.1 billion dollars in September, according to the report.
There has been a growth of only 1.3 percent in the first ten months of this year after several years of continuous rise. Exports in the month of October approached the US 207.1 billion dollars slightly as buyers from other countries invested less in aircraft engines, as well as, industrial supplies manufactured in the United States.
However, there was a much faster drop in imports, dropping 1.7 percent to their lowest level since April at US 254.3 billion dollars.