WASHINGTON: The US trade deficit shrank sharply in November as exports hit a record high for the second straight month, official data showed Tuesday in a positive sign for economic growth.
The foreign trade deficit narrowed 12.9 percent from October, the second month in a row of contraction, to a four-year low of $34.3bn, the Commerce Department reported.
That was the smallest trade deficit in goods and services with the rest of the world since September 2009. The deficit was much lower than expected; analysts had forecast $40.4bn. October’s deficit was $39.3bn. November exports rose 0.9 percent to a record $194.9bn.
Gains came mainly from aircraft and aircraft engines, chemicals and finished metal shapes.
Imports fell 1.4 percent to $229.1bn amid a decline in oil prices.
Imports of crude oil, which represent about 10 percent of total imports, dropped 10.8 percent in November to $21.4bn.
Oil import volume fell 12.2 percent, underscoring that the US economy is growing less dependent on foreign energy as the nation ramps up oil production.
The government predicted last month that US oil output will continue to surge toward the 1970 record high over the next two years, riding the gains in production from “tight” oil — such as shale reserves tapped by hydraulic fracturing, or fracking.
Petroleum exports, crude and products, hit a record $13.3bn in November, while imports fell to $28.5bon, the lowest level since November 2010. The petroleum deficit of $15.2bnn was the lowest since May 2009.
“Record purchases of foreign autos and capital goods point to a strengthening consumer, but the real story here is oil,” said Jay Morelock of FTN Financial.
“The energy sector is poised to create jobs and reduce dependence on foreign oil, a potential boost to GDP for years to come.”
Imports of automobiles continued to rise, reaching a record $27.2bn, the department said.
For the January-November period, the US trade gap was $435.1 billion, down 12.3 percent from the same period in 2012.
“Looking through the monthly changes in trade, which are generally choppy, it appears that export volumes are strengthening into year-end while import volumes are weakening,” said Aaron Smith of Moody’s Analytics.
Analysts said the November trade report suggested estimates for US economic growth in the fourth quarter need to be revised higher. “Some of the improvement represented prices rather than volumes but the real (inflation-adjusted) data were also positive,” Jim O’Sullivan of HFE Economics said in a research note.
“The data look consistent with net exports adding at least a point to Q4 real GDP growth,” he said.
Economists project that US gross domestic product growth will slow in the final quarter from the robust 4.1 percent annual pace in the third quarter.
AFP
