Higher oil prices ballooned the monthly trade deficit to the widest figure in over a year. The deficit for November was -$63.1 B (consensus -$59.5B, prior -$57.8B).
The gap between imports and exports widened by 9.3% MoM, the largest increase in two years as imports grew faster than exports, though exports did rise to a record new high. A weaker dollar continues to support demand for US goods and services, pushing export growth to record highs for the past nine months in a row.
Exports grew +0.4% MoM in November, while imports rose 3%, mainly due to higher oil prices. Excluding energy, the trade gap widened by $1.5B MoM as non-petroleum imports rose 1% (1/3rd of monthly increase, energy accounted for 2/3rds of monthly increase in imports).
By category, the US is a small net exporter of services ($9.6B), and a huge net importer of goods (-$72B). Aircraft exports plunged -19% MoM in November, followed by declines in telecom equipment of -6.3% and capital goods at -2.3%. Automotive exports grew by +4.5% MoM. Oil imports grew by +17.3% MoM, and are up 58% YoY. Industrial supplies rose +8.5% MoM, and food prices continue to increase, growing +2.5% MoM and 10.2% YoY.
In total dollar terms, exports totaled $205.4B in November while exports were fewer at $142.3B, hence the trade gap. When looking only at trade volumes, and not prices, the trade deficit still increased in November. This indicates that volumes rose, as well as prices, to push the deficit wider.
The trade deficit with China eased back to $24B from almost $26B the prior month.
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