Oil price raises US trade deficit

http://news.bbc.co.uk/go/rss/-/1/hi/business/7140576.stm

Version 0 of 1.

Rising prices for imported oil meant that the US trade deficit widened by more than expected in October.

Oil prices hitting $95 a barrel at the end of October were enough to offset the effect of the weaker dollar, which makes US exports more competitive.

The deficit increased to $57.8bn (£28.2bn) compared with September's revised figure of $57.1bn (£27.9bn), the Commerce Department said.

The average monthly price for a barrel of imported oil rose 6% in the month.

The weak dollar helped US exports of goods and services rise for the eighth month in a row to a record high of $141.7bn.

The deficit with China, which is one of the subjects being discussed at the economic summit near Beijing this week, also set a record for a single month.

Shipments of toys, games and televisions, as shops stocked up for Christmas, helped the deficit with China jump 9.1% to $25.9bn.