U.S. trade deficit widened to $78.2 billion in October

The U.S. trade gap expanded to $78.2 billion in October. The growth was 5.4%, less than half the pace of increase from the revised September's reading of 12.7%, when the trade deficit hit $74.1 billion.

The dollar's strengthening and weak demand in global markets are putting pressure on export performance. Currently, the U.S. currency is making U.S.-manufactured goods more expensive for foreign consumers, while imported products become more affordable for American buyers. But economic slowdowns in global markets have a negative effect on the country's exports. 

U.S. exports fell 0.7% in October compared to the previous month, being 2% lower than the highest export volumes recorded in August. In fact, production goods dropped the most, showing a decline of 4.4%.

The deficit in trade with China narrowed substantially, down by 22.6 % to $28.9 billion. Earlier, imports from China to the United States totaled $37.3 billion. 

This drop can be explained by a 31.3% rise in exports of U.S. goods to China. Another important driver for reducing the trade deficit is a 9.5% contraction of Chinese imports to the U.S.