Today’s census bureau report on international trade shows the trade deficit widened by 5.5%. The deficit was $65.3 billion in November, up $3.4 billion from $61.9 billion in October.
Exports of goods for November were $121.7 billion, $1.2 billion less than October exports.
Imports of goods for November were $187.0 billion, $2.2 billion more than October imports.
Balance of Trade
Balance of Trade by Category
This report will take a couple of ticks off 4th quarter GDP estimates.
Disclaimer: The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
11 thoughts on “Trade Deficit Widens by 5.5% as Exports Decline, Imports Rise”
The_Fishsaid:
Rather than having an eye on China, what chance Trump looks at Germany?
Mercantile and benefiting from the weak Euro. A Euro that will not recover due to non-competitive southern Europe that Germany is doing little to help.
Import breakdown via geography, sector would be interesting. How much of that auto sales section in German?
Cheap stuff from China, higher added value for middle class jobs from Germany/EU?
O/T for you, as not widely reported. Catalan leadership/parliament confirm a global political accord on the transitional judicial law to be implemented during Catalan secession this year. It is a secret text to avoid Spanish constitutional involvement, and follows the creation of other independent governmental departments. All this if the referendum occurs and is ‘leave’, but more likely there will be mass political arrests beforehand and civil strife :
This deficit is offset, however, by exports of USD to countries like India which do crazy things to their local currency. If other countries started to act more sanely, those USD might return home, and create some problems. But, of course, countries acting sanely is impossible, so there is nothing to worry about.
Mish, do imports include investments in US by foreign persons and entities? That is, do imports include just tangible goods or do they also include imported money, too?
To be honest, trying to figure trade imbalance messes with me.
People are sending the US more than the US sends back because :
They like America?
The US has no problem exchanging paper for goods?
America has guns?
People get a kick to think the president of America owes them?
American goods are worth more than face value and are under priced, so making the balance of trade meaningless in real terms?
Foreign goods are such a bargain that the US can’t help buying them and then some?
Someone has a finger under the scale?
Everyone has their fingers under both sides of the scale !?
There is no balance of trade, it’s a free for all and the chart is just a picture of how good the US is at securing delivery to its shores vs. goods lost in transit on the way to a US port for export?
junk from china breaks or wears out so fast have to buy more than one,at least 3 especially electronics.have to get the extended extended warranty on anything with a chinese label,quality have left the building in a massive way
Not everyone can run a surplus at once, some are mercantile and I wonder how long before a beady eye looks to Germany. Some of their advantage is down to currency that should be higher value if it wasn’t for other political policies helping them. Not so bad if they were prepared to bail out various but they won’t.
All benefit, little cost, sitting pretty with a captive Eurozone and strong $ vs Euro.
The trde imbalances has been out of whack for too long, JMHO. While I won’t dare to evaluate methods like imposing tariffs, something has got to be done about this. (I recall the grinning GWB in his debate with Kerry).
Giving the most favored status to CHINA is no less bizarre than singling out Russia and labeling it an agressor when she has n o t h i n g to gain from a military conflict but everything to lose.
Mish, am a fan but the jury is still out on this article of yours.
All talk? Grandstanding? Time will tell. But some of those deals have been desastrous, JMHO (as a non resident alien)
Rather than having an eye on China, what chance Trump looks at Germany?
Mercantile and benefiting from the weak Euro. A Euro that will not recover due to non-competitive southern Europe that Germany is doing little to help.
Import breakdown via geography, sector would be interesting. How much of that auto sales section in German?
Cheap stuff from China, higher added value for middle class jobs from Germany/EU?
LikeLike
O/T for you, as not widely reported. Catalan leadership/parliament confirm a global political accord on the transitional judicial law to be implemented during Catalan secession this year. It is a secret text to avoid Spanish constitutional involvement, and follows the creation of other independent governmental departments. All this if the referendum occurs and is ‘leave’, but more likely there will be mass political arrests beforehand and civil strife :
http://ccaa.elpais.com/ccaa/2016/12/29/catalunya/1483015644_407746.html
LikeLike
This deficit is offset, however, by exports of USD to countries like India which do crazy things to their local currency. If other countries started to act more sanely, those USD might return home, and create some problems. But, of course, countries acting sanely is impossible, so there is nothing to worry about.
LikeLike
Mish, do imports include investments in US by foreign persons and entities? That is, do imports include just tangible goods or do they also include imported money, too?
LikeLike
Current Account includes trade + capital
https://www.thebalance.com/current-account-deficit-definition-components-and-causes-3305831
LikeLike
The strong dollar at work. It’s starting to look like 1929, where a strong dollar, and weak Europe, caused trade to decline sharply….
LikeLike
So the US is losing the trade war?
To be honest, trying to figure trade imbalance messes with me.
People are sending the US more than the US sends back because :
They like America?
The US has no problem exchanging paper for goods?
America has guns?
People get a kick to think the president of America owes them?
American goods are worth more than face value and are under priced, so making the balance of trade meaningless in real terms?
Foreign goods are such a bargain that the US can’t help buying them and then some?
Someone has a finger under the scale?
Everyone has their fingers under both sides of the scale !?
There is no balance of trade, it’s a free for all and the chart is just a picture of how good the US is at securing delivery to its shores vs. goods lost in transit on the way to a US port for export?
….
LikeLike
“Is America great or what’?
LikeLike
junk from china breaks or wears out so fast have to buy more than one,at least 3 especially electronics.have to get the extended extended warranty on anything with a chinese label,quality have left the building in a massive way
LikeLike
Not everyone can run a surplus at once, some are mercantile and I wonder how long before a beady eye looks to Germany. Some of their advantage is down to currency that should be higher value if it wasn’t for other political policies helping them. Not so bad if they were prepared to bail out various but they won’t.
All benefit, little cost, sitting pretty with a captive Eurozone and strong $ vs Euro.
LikeLike
The trde imbalances has been out of whack for too long, JMHO. While I won’t dare to evaluate methods like imposing tariffs, something has got to be done about this. (I recall the grinning GWB in his debate with Kerry).
Giving the most favored status to CHINA is no less bizarre than singling out Russia and labeling it an agressor when she has n o t h i n g to gain from a military conflict but everything to lose.
Mish, am a fan but the jury is still out on this article of yours.
All talk? Grandstanding? Time will tell. But some of those deals have been desastrous, JMHO (as a non resident alien)
LikeLike