WASHINGTON, Dec 11: The US trade deficit rose 1.1 per cent in October to $57.2 billion, as a weak global economy hurt both imports and exports and the gap with China widened, a government report showed on Thursday.

The increase in the trade gap contrasted with analysts’ expectations of a drop to $53.5 billion.

The politically sensitive trade deficit with China increased marginally to $27.9 billion in October from $27.8 billion the previous month, the Commerce Department report said.

Total trade volume fell 1.7 per cent in October, with declines in both imports and exports, signalling the deepening economic crisis in the United States and abroad.

October imports were down 1.4 per cent from September to $208.9 billion while exports dipped 2.4 per cent to $151.7 billion.

It marked the third straight month of declining exports and imports, underscoring weakening US international trade amid the global slowdown from record peaks in July, when exports hit $168.1 billion and imports $229.4 billion.

The total trade deficit for the first 10 months of 2008 was $590.9 billion.

“As world growth slows dramatically, and many of America’s largest trading partners slide into recession, export markets are looking significantly more challenging for US firms,” said Meny Grauman of CIBC World Markets. The problem was compounded by a relatively stronger US dollar since June, Grauman said.

“The global slowdown is also curbing investment in plant and equipment,” noted Christopher Cornell, an economist at Moody’s Economy.com.—AFP