The US trade deficit rose sharply in October due largely to a sharp drop in foreign insurance payments as claim activity returned to normal in the month after the September 11th attacks on the United States.
The US commerce department said today the trade gap increased by $10.4 billion in October to $29.4 billion after plummeting in September to $19.0 billion.
The October trade gap reflected an $11.0 billion month-to-month increase in imports of goods and services to $106.8 billion. That included $10.5 billion which mostly reflected a return to the normal relationship between premiums paid to foreign insurers and claims received.
In comparison, imports of other goods and services were little changed from the previous month, reflecting the sluggish US economic picture.
US exports in October totaled $77.3 billion, up only $500 million from the depressed September level as overseas demand also remained weak.