The nation’s trade deficit increased in November to $48.7 billion, surpassing economists’ expectations for decrease to $41.1 billion.
The Commerce Department’s Census Bureau released brutally disappointing news on Friday that the nation’s trade deficit increased in November to $48.7 billion. Economists had been expecting to see the trade deficit decrease to $41.1 billion. As a result, the November trade deficit turned out to be a whopping $7.5 billion worse than previously assumed.
Thursday’s report from China’s Customs Administration, revealing that the nation’s trade surplus increased by 48 percent in 2012 on an annual basis, was based on a 7.9 percent increase in the nation’s exports. China’s trade surplus raised hopes that the data would reveal increasing demand for American exports as a result of improvement in the global economy. Unfortunately, this was not the case. The Commerce Department had more disappointing news for us. A Short Lesson in Bad Decision Making
From the report:
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total November exports of $182.6
billion and imports of $231.3 billion resulted in a goods and services deficit of $48.7 billion, up from $42.1 billion in October, revised. November exports were $1.7 billion more than October exports of $180.8 billion. November imports were $8.4 billion more than October imports of $222.9 billion.
In November, the goods deficit increased $6.6 billion from October to $65.7 billion, and the services surplus was virtually unchanged from October at $17.0 billion. Exports of goods increased $1.6 billion to $129.3 billion, and imports of goods increased $8.2 billion to $195.0 billion. Exports of services increased $0.1 billion to $53.2 billion, and imports of services increased $0.2 billion to $36.3 billion.
The goods and services deficit decreased $0.1 billion from November 2011 to November 2012. Exports were up $5.8 billion, or 3.3 percent, and imports were up $5.7 billion, or 2.5 percent.
Trade in advanced technology products resulted in a deficit of $11.8 billion. Advanced technology products exports were $26.0 billion in November and imports were $37.8 billion. US November Sales Increased Across the Board
The major ETFs expected to respond to the Commerce Department’s report on International Trade for November are:
Industiral Select Sector SPDR Fund ETF (NYSEARCA:XLI) -0.36%
Technology Select Sector SPDR Fund ETF (NYSEARCA:XLK) +0.14%
SPDR S&P Retail ETF (NYSEARCA:XRT) – 0.02%
Consumer Staples Select Sector SPDR Fund ETF (NYSEARCA:XLP) +0.45%
Consumer Descretionary Select Sector SPDR Fund ETF (NYSEARCA:XLY) +0.08%
Bottom line: The Commerce Department’s report, indicating that the nation’s trade deficit increased to $48.7 billion in November, exemplified how the Eurozone economic crisis is impacting the United States. Although the resulting $2.4 billion increase in the trade deficit from decreased exports to the Eurozone accounts for only 5 percent of the trade deficit, it demonstrates why global economic health is important to our domestic economy.