The U.S. trade deficit widened sharply in October as slowing global demand and a strong dollar weighed on exports.

The trade deficit increased 5.4% to $78.2 billion, the Commerce Department said on Tuesday. Exports fell 0.7% to $256.6 billion. Imports rose 0.6% to $334.8 billion.

The dollar at one point this year had appreciated more than 11% against the currencies of the United States' main trade partners from the end of December 2021, the result of the Federal Reserve's fastest rate-increasing cycle since the 1980s as it fights inflation.

A smaller trade deficit was one of the main factors behind the rebound in U.S. economic growth in the third quarter. October's sharp widening in the deficit suggested trade could be a drag on gross domestic product this quarter.