US foreign trade deficit for October posts outsized drop

America's shortfall on trade with the rest of the world dropped sharply in October amid a down-draft in import demand.

According to the Department of Commerce, the US trade deficit in good and services shrank at a month-on-month pace of 7.6% to reach $47.2bn (consensus: $48.7bn).

Exports of good and services dipped 0.2% versus September to reach $207.1bn but the bulk of the narrower deficit was the result of an outsized 1.7% decline in imports to $254.3bn.

Import of goods were especially weak, registering a month-on-month decline of 2.2% to reach $204.1bn.

Purchases of consumer goods from overseas dropped by $2.4bn versus the previous month and those of autos and parts by $1.8bn.

Among the former, pharmaceutical preparations paced declines, falling by $0.8bn.

Year-to-date, the total US trade deficit was 1.3% or $6.9bn higher when compared to the year before.