By Patricia Laya / January 06, 2018 / www.bloomberg.com /
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The U.S. trade deficit in November reachedthe highest level in almost six years as an increase in importsexceeded a gain in shipments overseas, Commerce Department datashowed Friday.
Highlights of Trade Balance (November)
Gap grew 3.2% to $50.5b (est. $49.9b deficit) from a revised $48.9b in the prior month (prev. $48.7b)
Imports rose 2.5% to a record $250.7b on more inbound shipments of consumer goods and industrial supplies
Exports climbed 2.3% to all-time high of $200.2b, led by increased shipments of automobiles, consumer merchandise and capital goods including commercial aircraft
Key Takeaways
The widening trade gap could be a drag on fourth-quartereconomic growth, keeping gross domestic product from advancingat least 3 percent on an annualized basis for a third straightquarter. Net exports added 0.36 percentage point to the 3.2percent gain in third-quarter GDP.
While a weaker dollar and improving global markets are spurringoverseas sales of U.S. goods and services, imports are alsopicking up on the heels of firmer demand from Americanhouseholds and companies.
In November, the unadjusted U.S. merchandise shortfall withChina climbed to the highest since September 2015, while the gapwith European Union countries was the largest in a year
Other Details
After eliminating the effects of price fluctuations, which generates the numbers used to calculate GDP, the trade gap widened to $66.7 billion, the widest since March 2015, from $65.6 billion
Imports of capital goods climbed to a record $56.5 billion, while consumer goods totaling $52.4 billion were the most since March 2015
Exports of merchandise increased to $134 billion, the highest since November 2014
Exports and imports of goods accounted for about three-fourths of America’s total trade in 2016; the U.S. typically runs a deficit in merchandise trade and a surplus in services
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