US trade gap widens

The United States' trade deficit widened in October, the Commerce Department reported Tuesday, as exports fell to a four year low. The latest Commerce report showed the US trade gap up 4.9 percent to USD 42. 2 billion, while imports dropped to a 18 month low. The figures were less grim than economists' expected USD 42.6 billion rise. In October, US exports of goods and services declined 3.6 percent to USD 180.5 billion, the most significant drop since January 2009, reflecting slowing global demand. Imports of goods and services fell 2.1 percent to USD 222.8 billion in October, the lowest since April 2011. The three-month moving average of the trade deficit, which irons out month-to-month volatility, widened modestly to USD 41.7 billion from USD 41.5 billion in the three months to September. In a sign of weak domestic demand, wholesale inventories increased 0.6 percent in October as sales fell for the first time in three months, the Commerce Department said in a second report.