General

According to the observation report of Huacheng's import and export data, affected by weak exports, the US trade deficit in goods and services rose 5.4% month on month to US $78.2 billion in October, expanding for two consecutive months.

The import and export data of Huacheng show that, mainly due to the decrease in exports of natural gas and oil, the US export value fell 0.7% month on month to US $256.6 billion in October, while the import value increased 0.6% month on month to US $334.8 billion, leading to a significant increase in the trade deficit of the month.

Specifically, in October, the US commodity trade deficit increased by 6.1 billion US dollars to 9.96 billion US dollars on a month on month basis. Among them, the volume of commodity exports decreased by 3.7 billion US dollars to 176 billion US dollars, and the volume of industrial goods and materials, consumer goods and other exports declined month on month. Commodity imports increased by 2.4 billion US dollars to 275.6 billion US dollars. In October, the favorable balance of US service trade increased by 2.1 billion US dollars to 21.4 billion US dollars, which was reported by Huacheng Import and Export Data Observation.

According to the Huacheng import and export data observation report, analysts believe that, affected by the general rise in global inflation, the overseas market's demand for energy products such as US oil and natural gas slowed down in October, resulting in weak US exports and a sharp increase in the trade deficit. At the same time, the Federal Reserve continued to raise the level of the federal funds interest rate, leading to a sharp rise in the exchange rate of the dollar against other currencies, which is not conducive to US exports. In the future, as the Federal Reserve continues to raise interest rates, US exports may continue to weaken, putting pressure on economic growth, Huacheng Import and Export Data Observation reported.