Trade Deficit Dropped to $34.3 Billion

The U.S. trade deficit contracted 13% in November to $34.3 billion. The improvement in the deficit was due to a combined decrease in imports and increase in exports. November’s report also slightly revised up October’s headline numbers.

Exports increased by 0.9% to $194.9 billion. The petroleum deficit decreased by $1.4 billion to $9 billion. The services industry grew by $0.2 billion to $19.7 billion.

The increased exports in November caused a reduction in the real deficit, adding around 0.5% to fourth quarter annualized real GDP growth.

Imports decreased by 1.4% to $229.1 billion. The drop was primarily due to a $4.3 billion decrease in imports of industrial supplies and materials.

Read the Census report.