Trade Deficit declines in October

The Department of Commerce reports:

[T]otal October exports of $179.2 billion and imports of $222.6 billion resulted in a goods and services deficit of $43.5 billion, down from $44.2 billion in September,
revised. October exports were $1.5 billion less than September exports of $180.6 billion. October imports were $2.2 billion less than September imports of $224.8 billion.

The trade deficit was at the consensus forecast of $43.5 billion.

The first graph shows the monthly U.S. exports and imports in dollars through October 2011.

Click on graph for larger image.

Both exports and imports decreased in October. Imports have been mostly moving sideways for the past six months (seasonally adjusted). Exports are well above the pre-recession peak and up 12% compared to October 2010; imports have stalled recently but are still up about 11% compared to October 2010.

The second graph shows the U.S. trade deficit, with and without petroleum, through October.

The blue line is the total deficit, and the black line is the petroleum deficit, and the red line is the trade deficit ex-petroleum products.

Oil averaged $98.84 per barrel in October, and import oil prices have been declining slowly from $108.70 per barrel in May. The trade deficit with China was unchanged at $28 billion.

Imports have been moving sideways for the last several months - partially due to slightly lower oil prices. However the trade deficit with China continues to be a significant issue.