Mubasher: The adjusted US trade balance deficit expanded to a 10-year high in October as imports hit a fresh record high, official data showed.

The US trade deficit widened by 1.7% to $55.5 billion last October, from a revised $54.6 billion in September, marking the biggest gap since October 2008, the Bureau of Economic Analysis (BEA) said.

This came higher than expectations of a $55.1 billion deficit, according to analysts surveyed by MarketWatch.

Adjusted for inflation, the trade deficit grew to $87.9 billion during the month.

Imports rose 0.2% to a record $266.5 billion in October, as the US brought in more automobiles, drugs, and other consumer drugs.

Meanwhile, exports dipped 0.1% to $211 billion in October, as the US shipped less aircraft and soybeans.

The politically sensitive trade deficit with China expanded to $38.2 billion, despite the US administration aimed to reduce Chinese imports through tariffs.

The US agreed with China last weekend to hold off on another raft of tariff hikes, giving both sides 90 days to resume trade talks to resolve their disputes.