Friday, January 13, 2012

Trade Deficit Widened in November

The U.S. trade deficit for November widened considerably more than expected to $47.8 billion from $43.3 billion. This widening follows five consecutive months of narrowing and puts the trade balance at its largest level since June. The widening was a result of both an increase in imports as well as a slowdown in exports. The real goods balance also widened significantly to $63.2 billion from $58.6 billion.

Imports grew by $3 billion to $225.6 billion as exports shrunk $ 1.6 billion to $177.8 billion. A pickup in inventory accumulation is pushing imports higher. Slower growth overseas as a result of Europe’s debt crisis and a slowing in China led exports to fall. Also contributing to the widening was a widening in the petroleum balance by $3.4 billion.

Read the report.

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