WASHINGTON • The United States trade deficit unexpectedly fell in October to its lowest level in more than a year as Americans imported billions less in automobiles and consumer goods like toys and mobile phones, according to government data released yesterday.

Reducing the deficit is the central goal of President Donald Trump's aggressive trade agenda. The fall reflected the decline in the worldwide exchange of goods and services as the global economy weakens. But it could help lift US economic growth in the final quarter of this year, since deficits subtract from gross domestic product.

Trade with China continued to slide as the world's two largest economies maintained costly tariffs on each other's goods, according to the monthly Commerce Department report.

The overall trade deficit tumbled 7.6 per cent to US$47.2 billion (S$64.3 billion) in October - below what economists had been expecting and the lowest level since May last year - from US$51.1 billion in September, the report showed.

In the first 10 months of this year, the deficit has grown only 1.3 per cent after years of steady increases. Exports in October edged down to US$207.1 billion as foreign buyers took in fewer US-made aircraft engines and industrial supplies.

But imports fell much faster, sinking 1.7 per cent to their lowest level since April at US$254.3 billion.

Ahead of the holiday shopping period, and with more Trump tariff increases looming for many Chinese-made goods, US importers took in US$800 million less in auto parts, while mobile phone imports fell by US$400 million, and toys and sporting goods declined by US$300 million. Imports of trucks, buses and passenger cars fell by US$1 billion.

The deficit with China fell 0.8 per cent in October from the previous month, and is down nearly 15 per cent in the year to date as the US-China trade war continues to weigh on the global economy.

AGENCE FRANCE-PRESSE