Friday, January 13, 2012

US trade deficit widens sharply in November

After declining for four straight months, the U.S. trade deficit widened in November, bringing the trade gap up to its highest level since June.
The nation's trade deficit widened 10.4% in November to $47.8 billion, the Commerce Department said. This is the largest increase since May.
Exports fell 0.9% to $177.8 billion in November, the second straight drop after hitting a record high in September. Imports rose 1.3% to $189.7 billion in November. Imports have been treading water after hitting $226.2 billion in May. Market watch

Analysts surveyed by MarketWatch had expected a deficit of $43.6 billion. The sharp increase in the deficit could cut the government's estimate of fourth-quarter growth. Market watch
While consumer goods imports declined in November, demand for capital goods made overseas climbed to a record $43.8 billion. Automobile imports rose $816 million in November to $22.3 billion. Businessweek
U.S. shipments abroad dropped 0.9 percent to $177.8 billion even as exports of consumer goods increased to a record $15.7 billion. Businessweek
The U.S. is looking for new markets to sell its goods. In 2010, President Barack Obama set a goal of doubling U.S. exports by 2015 as a way of promoting jobs in a tough economy. AP
Two months ago, Congress approved three long-stalled free trade agreements with South Korea, Colombia and Panama. By removing trade barriers, the administration says the free trade deals will boost U.S. exports by $13 billion a year. AP.
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