US trade deficit shrinks to 16-year low

(Sharecast News) - America's trade deficit with the rest of the world fell to its lowest in more than 16 years in October, according to the Bureau of Economic Analysis, as exports hit a record high while imports slumped. The goods and services trade balance increased to -$29.4bn in October, compared with a revised -$48.1bn in September, the BEA announced on Thursday.

This was the smallest deficit registered since June 2009 and came as a surprise to economists who had pencilled in a higher deficit of around $58bn.

The amount of goods and services exported out of the US totalled $302.0bn in October, up $7.8bn (+2.6%) over the month to a new all-time high, while imports fell $11.0bn (-3.2%) to a $331.4bn - its lowest in 21 months.

Overall, the goods deficit shrank $19.2bn over the month to $59.1bn, while the services surplus slipped just $0.4bn to $29.8bn.