U.S. trade deficit rises in October as U.S. imports more energy, pharmaceuticals and autos

The U.S. Bureau of Economic Analysis and the U.S. Census Bureau reported that the U.S. trade deficit widened in October due to a decline in exports and falling demand for U.S. oil and natural gas.

The U.S. trade deficit increased to $78.2 billion in October from $74.1 billion in September. Exports fell 0.7% to $256.6 billion, reflecting declines in exports of petroleum, pharmaceuticals, and natural gas. Imports rose 0.6% to $3348 billion as the U.S. imported more energy, pharmaceuticals, and autos.

Consumer spending also rose in October despite record inflation and fears of a recession next year. However, Wall Street investors expressed concern about the current economic climate. While U.S. unemployment remains low, inflation has reached its highest level in 40 years. These factors have prompted the Federal Reserve (Fed) to raise interest rates by the most in 40 years in an effort to bring down inflation, which remains high.

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