Filed under: Forecasts, Bad news, Economic data
The U.S. trade deficit unexpectedly widened 9.3% in November 2007 to a seasonally-adjusted $63.1 billion on a record increase in oil prices, the U.S. Commerce Department announced Friday in a statement.
Analysts had expected a $59.5 billion trade deficit for November 2007. Imports increased 3% to a record $205.4B while exports increased to a record $142.3 billion. November’s $63.1 billion total was the largest monthly deficit since September 2006.
Crude reality
The key driver of the unexpected deficit jump was the importation of oil. The United States spent a record $79.7 billion in November 2007 on oil imports, driven by, for equal measure, a record average price for a barrel of oil — $79.65, which was up $7.16. In non-inflation-adjusted terms, November 2007’s trade deficit was 8% higher than a year ago.
“It’s a disappointing number, but one has to qualify that by noting that the oil imports skewed the numbers somewhat. Without the increase in oil imports from oil’s record price, the trade deficit is decreasing, driven by the weaker dollar and increased exports,” economist Steve Affinito told BloggingStocks Friday. “That said, we still have to reduce our imports of foreign oil.”
Continue reading Trade deficit unexpectedly widens to $63.1B in November
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