Trade gap widens unexpectedly, hits record

Wider and wider, as long as Bushco is in power.

he U.S. trade deficit widened unexpectedly in October to a record $68.9 billion despite a drop in the cost of imported oil, as the deficits with China, Canada, the European Union, Mexico and OPEC all hit records, government data showed on Wednesday.

Economists had expected the trade gap to shrink in October to $63.0 billion, and its surprising growth suggests fourth-quarter economic growth will likely be even weaker than first thought.

"The trade deficit certainly came in worse than expected," said Bob Lynch, currency analyst at HSBC in New York. "It was largely energy influenced but I don't think that should detract from the overall deterioration of the external balance. The dollar was already on the defensive this week and this data only reinforces that bias."

The dollar extended losses against the euro and yen, while U.S. Treasury debt prices remained higher after the report.

The Commerce Department said the deficit widened 4.4 percent from September after growing 11.9 percent the previous month.

Semper Fi