Sunday, July 13, 2014





US trade gap hit $48.7 billion in November


February 20. 2013 1:41AM
Story Tools
PrintPrint | E-MailEMail | SaveSave | Hear Generate QR Code QR
Send to Kindle


121df3088e7c4c7780e5f276e195ee43.jpg



(AP) 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.


Imports grew 3.8 percent to $231.3 billion, led by gains in shipments of cell phones, 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 cell phones 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.


Associated Press


Comments
comments powered by Disqus Commenting Guidelines
Poll
Mortgage Minute


Search for New & Used Cars

Make 
Model
 
Used New All
 

Search Times Leader Classifieds to find just the home you want!

Search Times Leader Classifieds to find just what you need!

Search Pet Classifieds
Dogs Cats Other Animals



Social Media/RSS
Times Leader on Twitter
Times Leader on Youtube
Times Leader on Google+
The Times Leader on Tumblr
The Times Leader on Pinterest
Times Leader RSS Feeds