–US Crude Oil Imports +$1.9B; China NSA Bal -$25.6B
By Joseph Plocek
WASHINGTON (MNI) – The U.S. November trade data kept October’s
improvement and suggest trade will add to the Q4 real growth rate.
The November trade balance was -$38.3 billion, the lowest deficit
since January 2010 and a second surprise month, as imports advanced
$1.1 billion but exports gained $1.2 billion. October’s trade balance
was $38.4 billion after revision. Trade deficits had been in the $40 to
$50 billion area from February to September.
In November exports, civilian aircraft added $420 million and
pharmaceuticals added $981 million, and these were key to improvement.
In imports, crude oil posted +$1.9 billion as the average unit
price rose 3.5% per barrel but quantities also gained. This was offset
by -$427 million in autos and -$912 million in pharmaceuticals.
The services trade surplus of $12.9 billion was a record. Services
imports fell $0.3 billion on lower transport/travel costs.
For October-November, on average the real trade balance is showing
an almost 10% improvement from the Q3 average, enough to add
substantially to real GDP growth. The add should be in the area of 1 to
2 percentage points.
The unadjusted trade data by country showed the balance with China
was -$25.6 billion after -$25.5 billion in October as exports moved to
their highest on record; with Japan -$5.8 billion after -$5.7 billion,
and with OPEC -$7 billion after -$5.7 billion.
Asia and oil remain problem areas because the U.S. continues to
depend on imported energy and cheaper Asian manufactured goods. But
overall the encouraging data show an increase in trade as the world
economy recovers.
**Market News International Washington Bureau: (202)371-2121**
[TOPICS: M$U$$$,MU$$$$,M$$FI$,MT$$$$,MAUDS$]
