Economic Report: Advanced U.S. trade deficit in goods widens to $80.3 billion in October

A cargo chip arrives into the Port of Los Angeles, the busiest container port in the U.S.

The numbers: The U.S. trade deficit in goods widened in October as consumer spending remains one of the bright spots in the economy.

The deficit in internationally traded goods widened to $80.3 billion last month from $79.4 billion, the Commerce Department said Wednesday. Economists polled by MarketWatch had forecast a widening in the trade gap to $80 billion.

What happened: Exports rose $3.4 billion in October to $126 billion.

Imports of foreign goods rose $4.4 billion last month to $206.3 billion. Imports are back to pre-pandemic levels

The advanced trade report only includes goods. Services such as travel and tourism – some of the industries hardest hit by the pandemic- aren’t included until the full trade report is released next week.

An advanced look at wholesale inventories showed a 0.9% gain in October. And an early look at retail inventories showed a 0.8% rise.

Big picture: Economists said that international trade flows are improving since the start of the pandemic but with rising virus cases, the sector will remain subdued. Imports have come back much more strongly than exports, leading to a much wider deficit. The goods trade deficit was $68.3 billion in February. The incoming Biden administration should be concerned that global partners are relying on U.S. consumers to bolster their own economies, said former Treasury Secretary Larry Summers.

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December 05, 2020 at 02:59AM

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