The US trade deficit widened sharply in October as slowing global demand and a strong dollar weighed on exports, BTA reports.

The deficit grew by 5.4 percent to $78.2 billion, the Commerce Department announced today.

Exports fell 0.7 percent to $256.6 billion.

Imports rose 0.6 percent to $334.8 billion.

The dollar jumped as the US services sector continued to expand in November

The dollar has for some time appreciated more than 11 percent against the currencies of the US's major trading partners since the end of December 2021 as a result of the US Federal Reserve's fastest cycle of rate hikes since 80s of the last century, aiming to control the galloping inflation.

A narrower trade deficit was one of the main factors behind the recovery in economic growth in the third quarter.

The sharp increase in the deficit in October suggests that trade may hold back gross domestic product growth this quarter.

USA

trade deficit