Trade Deficit Widened in November to a Nine-Month High
The U.S. trade deficit widened to a nine-month high in November as exports fell and companies and governments imported the most since August 2015.
The gap grew by 6.8% to $45.2 billion from a revised $42.4 billion in the prior month, Commerce Department figures showed Jan. 6. The November shortfall was in line with the Bloomberg News survey median for a $45.4 billion gap.
Weaker overseas sales of U.S.-made goods and stronger domestic demand for imported merchandise indicate trade weighed on economic growth in last year’s fourth quarter. America’s net export position also has been made even more tenuous, given the dollar’s rally in late 2016.
Exports decreased 0.2% to $185.8 billion in November on slower shipments of foods, capital goods and motor vehicles, the Commerce Department data showed. Exports of capital equipment were the weakest since September 2011 and reflected a sharp drop in shipments of commercial aircraft.
Imports increased 1.1% to $231.1 billion on more purchases of foreign-produced crude oil and foods. Inflation-adjusted imports of petroleum were the highest since November 2012.
After eliminating the influence of prices, which renders the numbers used to calculate gross domestic product, the trade deficit widened to a five-month high of $63.6 billion from $60.3 billion in the prior month.
Trade contributed 0.85 percenage point to U.S. economic growth in the third quarter, the most since the final three months of 2013.
A jump in soybean shipments to overseas customers that boosted exports in the third-quarter is in the process of unwinding. Soybean exports declined in November to $1.9 billion from $2.2 billion. Trade and inventories are two of the most volatile components in GDP calculations.
The report also showed the merchandise trade gap with China, the world’s second-biggest economy, narrowed to a seasonally adjusted $28.4 billion from $28.9 billion. The trade deficit with Europe widened.
