Skip to main content

U.S. trade deficit rises to near six-year high on record imports

The U.S. trade deficit increased more than expected in November as imports of goods surged to a record high amid strong domestic demand, making it likely that trade will subtract from economic growth in the fourth quarter.

The Commerce Department said on Friday the trade gap widened 3.2 percent to $50.5 billion. That was the highest level since January 2012 and followed an upwardly revised $48.9 billion shortfall in October.

Economists polled by Reuters had forecast the trade deficit increasing to $49.5 billion in November after a previously reported $48.7 billion deficit in the prior month.

Part of the rise in the trade deficit in November reflected price increases. When adjusted for inflation, the trade deficit rose to $66.7 billion from $65.6 billion in October. The so-called real trade deficit for October and November was above the third-quarter average of $62.0 billion.

That suggests trade will probably subtract from gross domestic product in the October-December quarter. The chronic trade deficit has garnered the attention of Republican President Donald Trump, who has blamed it for the massive loss of U.S. manufacturing jobs as well as moderate economic growth.

The government reported last month that trade contributed 0.36 percentage point to the economy’s 3.2 percent annualized growth pace in the third quarter. The Trump administration believes that a smaller trade deficit, together with deep tax cuts, could boost annual economic growth to 3 percent on a sustained basis.

Imports of goods jumped to a record high of $204.0 billion in November. Capital goods imports were the highest on record. Imports of consumer goods rose to their highest level since March 2015. The strong growth in imports is being driven by robust consumer demand.

The country’s import bill was also pushed up by imports of industrial supplies and materials, which were the highest since January 2015.

Imports from China were unchanged in November. Exports of goods increased 2.3 percent to $200.2 billion in November, the highest on record. There were strong increases in exports of industrial supplies, petroleum and capital goods.

Overall exports of goods are being supported by recent dollar depreciation and a strengthening global economy, which is helping to underpin the manufacturing sector.

Exports to China fell 1.9 percent. The politically sensitive U.S.-China trade deficit rose 0.6 percent to $35.4 billion in November.

Comments

Post a Comment

Popular posts from this blog

Kenyan Law Court dismisses case of man seeking compensation after his wife eloped with another man from hospital

  A lawsuit filed by a man seeking to be compensated by St Mary's Mission Hospital in Kenya for allowing his wife to leave the hospital with another man after giving birth, has been struck out by a law court.    The appellant had sued the St. Mary's Mission hospital at Kakamega law courts in 2020 seeking general damages from the facility on grounds that the hospital had discharged his wife and allowed her to leave with another man. After delivering and at the time of discharge, the wife of the appellant claimed he was the baby's father.   The court of appeal judges Patrick Kiage, Mumbi Ngugi and Francis Tuiyott sitting at the Kisumu Court of Appeal, empathized with the man, but disagreed that he (the appellant) be compensated by the hospital for not detaining his wife.  They upheld the lower court's judgement which added that there's no remedy that lies in the law for such grievances.   Kiage said;   "I agree that if a man takes the woman he loves to t...
Post a Comment
Read more

FRSC reinforces directive on use of google maps while driving

The Federal Road Safety Corps (FRSC) has clarified its position on the use of Google Maps, The FCT Sector Commander of the Federal Road Safety Corps (FRSC), Ayuba Gora was quoted saying that driving with the aid of Google map using mobile phones is a serious traffic offence. Gora said this at the inauguration of the 2019 Ember Months Campaign by Lugbe Unit Command of the FRSC in Abuja yesterday. But, FRSC Spokesman Bisi Kazeem making reference to Gora’s comments said the Sector Commander was quoted out of context and his statement outrightly misrepresented. Kazeem said the FRSC as a technology-driven organisation is not and has never stood against the use of Google Maps by Motorists. The statement read: “To state the obvious, we have always enlightened the public on the position of the law on the use of phone while driving. “The statement he made during the flag off buttresses the position of the Corps, which is that any driver who intends to deploy the use of Google Map...
Post a Comment
Read more

Hurricane Hits Texas, One Person Reported Dead

Hurricane Harvey hit Texas as a Category 4 storm on Friday, battering the coast with 130-mph winds and torrential rain. It was the strongest hurricane to hit the United States in more than a decade leaving a massive destruction, loss of electricity, wrecked buildings and has so far killed at least one person. Scroll down to see more pictures of the incident:
Post a Comment
Read more