Breaking News Bar
updated: 1/11/2013 10:59 AM

U.S. trade gap hit $48.7 billion in November

hello
Success - Article sent! close
  • The U.S. trade deficit expanded in November to its widest point in seven months, driven by a surge in imports that outpaced modest growth in exports.

      The U.S. trade deficit expanded in November to its widest point in seven months, driven by a surge in imports that outpaced modest growth in exports.
    Associated Press

 
Associated Press

WASHINGTON -- The U.S. trade deficit expanded in November to its widest point in seven months, driven by a surge in imports that outpaced only modest growth in exports.

The Commerce Department said Friday that the trade gap widened 15.8 percent to $48.7 billion in November from October.

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

Imports grew 3.8 percent to $231.3 billion, led by gains in shipments of cellphones, including Apple's new iPhone.

Exports increased only 1 percent to $182.6 billion. And exports to Europe fell 1.3 percent, further evidence of the prolonged debt crisis that has gripped the region.

A wider trade deficit acts as a drag on U.S. growth. It typically means the U.S. is earning less on overseas sales while spending more on foreign products.

Faster growth in exports helped the U.S. economy grow from July through September at an annual rate of 3.1 percent. Most economists say growth has slowed in the October-December quarter to an annual rate of less than 2 percent, in part because of weaker exports.

Paul Ashworth, chief U.S. economist at Capital Economics, predicts trade trimmed growth by about 0.5 percentage point in the final three months of the year. He expects fourth-quarter growth to be no more than a rate of 1.5 percent.

Through the first 11 months of 2012, the trade deficit is running at an annual rate of $546.6 billion. That's roughly 2.4 percent lower than the 2011 deficit.

Imports of consumer goods grew to $45.3 billion in November, a monthly record. Much of the growth was from cellphones and other household electronics products.

Oil imports dropped 2.5 percent, reflecting a fall in prices and lower volume.

Imports of foreign-made autos and auto parts rose a sizable $1.5 billion to $25.6 billion November, likely reflecting catch-up shipments following port disruptions in October caused by Superstorm Sandy.

The U.S. trade deficit with China, the largest with any country, totaled $29 billion in November. That's down slightly from the monthly record of $29.5 billion in October. But the trade gap with China is still on track to set a new annual record in 2012.

Trade was a modest positive for overall economic growth in 2012 and many economists believe that trend will continue in 2013. However, that forecast is based on a view that the European debt crisis stabilizes and growth in Asia begins to rebound.

In its latest outlook, a forecasting panel for the National Association for Business Economics predicted that the U.S. trade deficit for 2013 will total $533 billion, a slight improvement from the $540 billion deficit they expect when the trade numbers are totaled up for all of 2012. That expectation for a slight improvement is based on a view that export growth will outpace imports in 2013.

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.