Trade gap rises as exports plummet
Department of Commerce report shows imports exceeded exports by $57.2 billion.
NEW YORK (CNNMoney.com) -- The trade deficit rose unexpectedly in October as U.S. exports plummeted, according to a government report released Thursday.
The U.S. Department of Commerce reported that imports exceeded exports by $57.2 billion, up from the $56.6 billion gap in September.
Economists had expected a $53.5 billion gap, according to a consensus estimate compiled by Briefing.com.
Strength in exports, which contributed to gross domestic product, has come to an abrupt halt as major trading partners in Europe and Asia feel the effects of a global recession, according to Bob Brusca, economist at Fact and Opinion Economics in New York.
"The economies overseas are getting hit with recession all of a sudden," said Brusca.
"The bad news is that the growth rate in exports is falling very, very quickly," he said.
Exports decreased 2.2% to $151.7 billion in October from $155.1 billion in September, pushing them to the lowest levels since March. There were across-the-board declines in all categories of exported goods.
Imports decreased 1.2% to $208.9 billion in October from $211.6 billion in September, the lowest since February. Petroleum made up a greater proportion of imports from September, comprising nearly 18% of total imports.
There were fewer imports of big-ticket goods such as capital goods and autos, and increases in imports of foods, industrial supplies and a modest rise in consumer goods.
The non-seasonally adjusted trade gap with China increased to $27.9 billion in October. 
-
These 5 cities have the fastest-growing foreclosure rates. And they're not the usual suspects. More -
Now you can get the $8,000 credit through June 2010 -- or $6,500 if you're not a first-time buyer. More -
Home prices are forecast to plummet, but these 7 cities are predicted to post gains. More -
Home prices have grown in the beer-guzzling heartland and fell in the wine-sipping coastal states. More -
Investors think Detroit's foreclosed houses are a deal. Would you buy this one for $6,900? More -
Economic growth, affordable wages -- these spots have what entrepreneurs need to thrive. More
