·
The U.S. foreign trade deficit improved more than expected in October.
September's deficit was revised lower due to lessened imports.
Consensus expectations had been for a October deficit of $36.5B.
Declines in exports and imports likely were influenced by the dock
workers strike.
· Exports fell for the third consecutive month due to across the board component declines. Capital goods exports plunged 2.5% (5.4% AR, YTD). Exports of foods, feeds and beverages fell a hefty 4.0%, the third consecutive monthly decline. Auto exports fell for the fourth month in five. Nonauto consumer goods exports rose following two months of decline (1.1% AR, YTD).
· Imports fell for the third month in four also due to across the board component declines. Capital goods imports fell a huge 6.0% (-1.7% AR, YTD), the fourth consecutive monthly decline. Imports of nonauto consumer goods also plunged, down 4.9% for the third monthly decline in four. Imports of industrial supplies and materials rose despite a decline in the refiner's acquisition cost of imported crude oil. The cost of crude oil fell to $26.74 in October from $27.14 in September.
