Oil price raises US trade deficit

The weaker dollar was offset by rising oil prices

Rising prices for imported oil meant that the US trade deficit widened by more than expected in October.

Oil prices hitting $95 a barrel at the end of October were enough to offset the effect of the weaker dollar, which makes US exports more competitive.

The deficit increased to $57.8bn (£28.2bn) compared with September's revised figure of $57.1bn (£27.9bn), the Commerce Department said.

The average monthly price for a barrel of imported oil rose 6% in the month.

The weak dollar helped US exports of goods and services rise for the eighth month in a row to a record high of $141.7bn.

The deficit with China, which is one of the subjects being discussed at the economic summit near Beijing this week, also set a record for a single month.

Shipments of toys, games and televisions, as shops stocked up for Christmas, helped the deficit with China jump 9.1% to $25.9bn.