THE United States trade deficit widened in October but remained smaller than a year earlier, and included a big jump in exports to China, especially cars, the U.S. Commerce Department said yesterday.

    The overall trade gap for the month grew nearly 18 percent to US$42.6 billion, an increase of US$6.4 billion over the surprisingly low September deficit. The level was about in line with analyst expectations, which forecast US$41.8 billion, as the deficit returned to trend.

    The gap was 2.1 percent lower than October 2015, and for the year-to-date the trade deficit is tracking about US$10 billion lower than the first 10 months of 2015.

    However, economists warn that if exports remain soft in the final two months of the year it could create a drag on fourth quarter growth, while the strong dollar will only help boost imports.

    Amid a steady stream of tweets from President-elect Donald Trump on China and trade, including threats to slap punitive tariffs on imports, trade with China stood out in the report as U.S. exports to the country reached their highest level since December 2013 at US$13 billion.

    The deficit with China shrank 4.2 percent to US$31.1 billion in the month, in part due to a 27 percent rise in U.S. passenger car exports to US$939 million, even while imports from China were at their highest in the past year at US$44.3 billion.

    For the first 10 months of this year, the deficit with China is US$20 billion lower than at the same point of 2015, the data show.

    Total U.S. exports fell US$3.4 billion to US$186.4 billion as sales of soybeans fell 30 percent, or US$1 billion, from the sharp surge in September. Corn exports fell 36 percent. Civilian aircraft engine sales were up nearly 5 percent to US$3.2 billion but exports of aircraft fell 9.5 percent to US$5.3 billion.

    (SD-Agencies)