U.S. trade deficit widens in October

WASHINGTON, Dec. 6 (Xinhua) -- Trade deficit of the United States grew in October amid falling exports and reduced demand for U.S. petroleum and natural gas, according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau.

The deficit increased from 74.1 billion U.S. dollars in September's revised figure to 78.2 billion dollars in October, as imports increased and exports decreased.

The goods deficit increased 6.1 billion dollars in October to 99.6 billion dollars.

Exports dropped 0.7 percent to 256.6 billion dollars, mirroring fewer shipments of petroleum, pharmaceuticals and natural gas.

Imports grew because of increased U.S. energy buys, as well as pharmaceuticals and autos, with a jump of 0.6 percent to 334.8 billion dollars.

October also saw an increase in consumer spending, in spite of record inflation and fears of a possible recession late next year.

Indeed, both Wall Street and Main Street have expressed concerns over the current state of the economy. While unemployment is low, inflation stands at a four-decade high.

That has spurred the U.S. Federal Reserve to embark on the most aggressive rate-hike cycle in four decades, in a bid to tamp down stubborn inflation.

Rate hikes have hammered the U.S. stock market and made it far more difficult for potential buyers to purchase homes.