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MNI DATA ANALYSIS: US October Trade Gap Widened To $48.7b>

--Census Goods Gap $68.1b Vs $68.3b Advance Estimate
By Kevin Kastner, Holly Stokes and Sara Haire
     WASHINGTON (MNI) - The U.S. international trade gap widened to 
$48.7 billion in October, a larger gap than the $47.5 billion deficit 
expected and following a revised wider $44.9 billion gap in September, 
data released by the Commerce Department Tuesday morning showed. 
     The wider trade gap was the result of a virtually unchanged reading 
for exports and 1.6% increase in imports to a record high $244.6 
billion level. 
     The revised Census goods gap reported Tuesday was smaller than the 
advance estimate of $68.3 billion, coming in at $68.1 billion. The 
Census gap was much wider than September's $64.0 billion reading. The 
overall BOP goods gap widened to $69.1 billion from $65.2 billion in 
September. 
     The services surplus was roughly unchanged from September, 
narrowing to $20.3 billion from $20.4 billion in September
     The chained goods gap widened to $65.3 billion from $62.2 billion 
in September and was much larger than the $62.0 billion third quarter 
average, a negative for fourth quarter GDP. 
     The petroleum gap narrowed to $3.2 billion in October from $3.9 
billion in September, though both exports and imports rose on higher 
prices. The nonpetroleum gap widened to $64.9 billion from $60.1 
billion. 
     Exports held steady in the month, as a $1.4 billion drop in soybean 
exports and a $1.1 billion drop in civilian aircraft exports were offset 
by a sharp increase in industrial supplies, with virtually every energy 
component higher. There were small declines for autos and consumer 
goods. 
     Imports were lifted primarily by a price-related surge in crude 
oil, as the barrel price hit a two-year high. There was also a $0.3 
billion gain in cell phone imports due to the new iPhones. A small 
decline in capital goods imports provided some offset. 
     The unadjusted trade gaps with the EU, Canada, Mexico, China, and 
Japan all widened in October. 
     Trade with China was particularly strong, with exports the highest 
since December 2013 and imports a record high. 
     ** MNI Washington Bureau: 202-371-2121 ** 
[TOPICS: MAUDS$,M$U$$$,MAUDR$]

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