Weak exports, imports signal tepid economic growth |
| Reuters - Dec 11, 2012 |
The trade deficit widened in October as exports suffered the biggest drop in nearly four years, indicating slowing global demand was spilling over into the already struggling U.S. economy.
The Commerce Department said on Tuesday the trade gap increased 4.9 percent to $42.2 billion. In a sign of weak domestic demand, imports hit the lowest level in 1-1/2 years.
"The report tells a tale of weakening economic growth momentum both domestically and globally," said Millan Mulraine, a senior economist at TD Securities in New York.
Economists, who had expected the trade deficit to widen to $42.6 billion in October, said superstorm Sandy could have disrupted trade flows. The storm, which struck the East Coast in late October, shut ports in New York and New Jersey.
However, the Commerce Department did not indicate that Sandy was a factor. The wider trade gap in October reflected a 3.6 percent fall in exports of goods and services to $180.5 billion. That was the biggest percent drop in exports since January 2009.
Read Full Article from Reuters
- Posted: 2012-12-11 14:06:04
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