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US trade deficit drops
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WASHINGTON — The US trade deficit with the rest of the world dropped unexpectedly in October, by 7.6 percent, as a surge in exports offset a small increase in imports, official data showed Thursday.
The goods and services trade gap totaled a seasonally adjusted 32.9 billion dollars, down from a revised 35.7 billion dollars in September, the Commerce Department said.
Most analysts had forecast the deficit would rise to 36.8 billion dollars.
The politically sensitive trade deficit with China continued to widen, to 22.7 billion dollars, its highest level in a year.
The gap with China accounts for more than two-thirds of the US trade deficit.
On an annual basis, the overall deficit narrowed 8.1 percent in October.
Exports increased 2.6 percent to 136.84 billion dollars.