Washington: The US trade deficit declined 1.6 percent in October to USD 43.46 billion, its lowest level this year, the Commerce Department said on Friday.

The cumulative trade deficit for the first 10 months was USD 465.22 billion, compared with USD 420.73 billion in the same period of 2010.

US exports of goods and services fell 0.8 percent in October to USD 179.17 billion, while imports dropped 1 percent to USD 222.64 billion, the Commerce Department said.

The value of US capital goods exported in October, USD 42.3 billion, is the highest on record, the department said, while exports to China and Latin America also reached unprecedented levels.

Those figures suggest that rising demand for US products and services in developing countries could offset the effect on exports of an expected recession in Europe.

Imports of crude oil account for 58 percent of the US trade deficit through October 31, the Commerce Department said.

(Agencies)