WASHINGTON, Dec 19: The US trade deficit widened 54.8 per cent in October, the government said on Wednesday, as foreign insurers’ payouts slumped after being inflated by the September 11 terrorist attacks.

It was the steepest change since June 1993.

The combined US deficit in trade of goods and services expanded to 29.4 billion dollars in October from 19 billion dollars in September, the Commerce Department said.

Overall, imports surged 11.4 per cent to 106.9 billion dollars while exports edged up just 0.7 per cent to 77.3 billion dollars.

But the figures were skewed by the September 11 airborne onslaught, which flattened New York’s World Trade Center, wrecked part of Washington’s Pentagon and killed thousands of people.

Immediately after the attacks, foreign insurers made big payouts, which were recorded as a cut in US imports of services. When the payouts ended, US services imports snapped back to normal.

As a result, the US surplus in services trade plunged 66.3 per cent to 5.56 billion dollars in October. The goods-only deficit, meanwhile, narrowed 1.7 per cent to 33.83 billion dollars.

The US trade deficit with Japan expanded to 6.96 billion dollars in October from 5.36 billion dollars in September.

The deficit with China widened to a record 9.15 billion dollars from 8.50 billion dollars.

In trade with the Hong Kong, South Korea, Singapore and Taiwan combined, the US deficit deepened to 2.51 billion dollars in October from 1.21 billion dollars in September.

The US trade deficit with the 12-nation euro zone grew dramatically to 5.58 billion dollars in October from 3.06 billion dollars in September.

In goods trade alone, capital goods imports increased 2.2 per cent to 22.78 billion dollars in October, led by computer accessories, computers and civilian aircraft.

Imports of consumer goods rose 0.9 per cent to 23.48 billion dollars.

Automobile imports edged up 0.9 per cent to 15.73 billion dollars.

But imports of industrial supplies and materials fell 2.5 per cent to 21.29 billion dollars, dragged down by declines in crude oil and petroleum products imports.

Exports of goods were helped by industrial supplies and materials, which climbed 3.3 per cent, and capital goods, which edged up 0.6 percent. Consumer goods exports also rose 3.4 per cent.

But auto exports fell 2.0 per cent to 6.32 billion dollars in the month.

The September petroleum deficit narrowed 8 per cent to 7.14 billion dollars as the total cost of petroleum imports fell 242.1 million dollars, or 3 per cent, to 7.84 billion dollars.

The United States imported 311.3 million barrels in October, compared with 266.0 million in September.—AFP