US trade deficit surges on OIL
…erodes without it
The trade deficit in November widened sharply from $43.2bln to $47.7bln. This one month $.4.5blm widening will knock something off GDP unless it comes back to us as inventory gains, which ahs been a common occurrence.
Exports fell by 1.2% in Nov while imports rose by 1.3%. Excluding petroleum exports fell by 1.2% and imports snaked up by 0.1% making the point that with or without oil the trade deficit got worse.
Landed oil prices rose by 3.7% in the month as the volume of imports surged by 4.5% a lethal combination for the deficit. The non-petroleum deficit worsened by about $1.5bln.