The U.S. trade deficit fell in October as America's energy boom lifted exports to a record high, the government reported Wednesday, suggesting an increase in global demand that should help to support domestic growth in the fourth quarter. The Commerce Department said the trade deficit fell 5.4 percent to $40.6 billion in October from a trade gap of $43 billion the previous month. Adjusted for inflation, the trade deficit fell to $48.3 billion in October from $51.4 billion, indicating that trade again will contribute to growth in the October-December period. The three-month moving average of the trade deficit, which smoothes monthly volatility, rose to $40.9 billion in October from $40.2 billion the previous month. An improving global economy is raising demand for U.S. exports. In October, exports increased 1.8 percent to a record $192.7 billion, ending three consecutive months of export declines. The United States is being helped by the energy revival, which has reduced its dependence on foreign oil. U.S. petroleum exports rose to the highest level on record in October, and are up 9.3 percent from a year ago. Imports rose 0.4 percent to $233.3 billion in October, the highest since March 2012. Oil imports rose 1.5 percent but are down 11.1 percent from a year earlier. Through October, the trade deficit is running 10.6 percent below last year's level. The deficit is smaller because exports have risen 2.7 percent while imports are at the same pace as in 2012. The U.S. trade deficit with the European Union (EU) hit a monthly record of $14.3 billion in October, as a 21.5 percent jump in imports outpaced a 1.5 percent gain in exports to the bloc. U.S. exports to Canada and Mexico also reached record highs in October.
