financetom
Economy
financetom
/
Economy
/
US goods trade gap widens in November
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US goods trade gap widens in November
Dec 27, 2024 8:12 AM

(Reuters) - The U.S. goods trade deficit widened more than expected in November on a rebound in imports, clouding the picture over whether trade might add to economic growth this quarter for the first time in a year.

The goods trade gap increased to a seasonally adjusted $102.9 billion last month from $98.3 billion in October, the Commerce Department's Census Bureau said on Friday. Economists polled by Reuters had forecast the goods deficit at $100.65 billion.

While exports rose by $7.4 billion, or 4.4%, to $176.4 billion, imports climbed by $12 billion, or 4.5%, to $279.2 billion. A 30.1% drop in exports in the "other goods" category, alongside a 15.1% increase in imports in the same category, accounted for most of the difference.

A larger-than-expected reduction in the trade deficit in October, when imports dropped by the most in nearly two years, had potentially set trade up as a contributor to gross domestic product growth in the current fourth quarter. Trade last added to growth in the fourth quarter of 2023.

The latest figures, though, have narrowed the margin by which goods export growth through the first two months of the quarter has exceeded imports growth. Moreover, businesses worried about President-elect Donald Trump's threats to raise tariffs on foreign goods may try to front load imports before he takes office next month. This could further narrow and possibly reverse exports' edge and leave trade as a drag on GDP growth for a fourth straight quarter.

Additional data on the November trade scene, including services imports and exports, will be reported in early January.

The U.S. economy grew at a 3.1% annualized rate in the third quarter even as net trade subtracted 0.43 percentage point from growth. The Federal Reserve Bank of Atlanta's GDP Now tracker has growth in fourth quarter on pace to match the third quarter rate.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Daily Roundup of Key US Economic Data for Feb. 19
Daily Roundup of Key US Economic Data for Feb. 19
Feb 19, 2025
02:35 PM EST, 02/19/2025 (MT Newswires) -- Housing starts fell by 9.8% to a 1.366 million annual rate in January, with single-family housing starts and multi-family starts both lower. Building permits rose by 0.1% to a 1.483 million rate in January. Single-family permits were unchanged, while multi-family permits were up slightly. Homes permitted but not started increased by 1.4%, suggesting...
Potential impact of Trump policies raised inflation concerns at Fed, minutes show
Potential impact of Trump policies raised inflation concerns at Fed, minutes show
Feb 19, 2025
WASHINGTON (Reuters) - President Donald Trump's initial policy proposals stoked concern at the Federal Reserve about higher inflation, with firms telling the U.S. central bank they generally expected to raise prices to pass through the cost of import tariffs, policymakers said at a meeting held about a week after Trump's January 20 inauguration. Participants at the U.S. central bank's January...
US single-family housing starts tumble in January
US single-family housing starts tumble in January
Feb 19, 2025
WASHINGTON(Reuters) - U.S. single-family homebuilding fell sharply in January amid disruptions from snowstorms and freezing temperatures, with a rebound likely to be limited by higher costs from tariffs on imports and elevated mortgage rates. Single-family housing starts, which account for the bulk of homebuilding, dropped 8.4% to a seasonally adjusted annual rate of 993,000 units last month, the Commerce Department's...
US Equity Indexes Search for Direction as Geopolitics, Tariffs Sap Risk Sentiment
US Equity Indexes Search for Direction as Geopolitics, Tariffs Sap Risk Sentiment
Feb 19, 2025
01:09 PM EST, 02/19/2025 (MT Newswires) -- US equity indexes were mixed in choppy midday trading Wednesday as investors weighed geopolitical risks and punitive import tariffs amid a steeper-than-forecast slump in housing starts. The Nasdaq Composite and the S&P 500 at their respective 20,031.7 and 6,131.2 levels changed little after trading lower earlier in the session. The Dow Jones Industrial...
Copyright 2023-2025 - www.financetom.com All Rights Reserved