WASHINGTON – The November trade balance was a $42.4 billion deficit after a $44.6 billion shortage in October as both imports and exports fell.
Imports posted a $3.8 billion deficit as cell phones (off $1.8 billion), pharmaceuticals (down $600 million), and computers (fell $300 million) declined amid lesser demand for communications.
Exports posted a $1.6 billion deficit, with about half the drop in fuels and another $537 million in telecommunications equipment.
Together, these suggest a slowing in world activity, with imports their lowest since February 2011 and exports their lowest since January 2012.
The imported oil price fell 88 cents on average per barrel to $39.24, its lowest since February 2009. Imported oil volume rose.
For Q4 the real trade balance stands about $1.5 billion wider than the Q3 average and will cut GDP. This might be a slightly lesser subtraction than some economists assumed.
Seasonally adjusted balances by country showed continuing problems with Asia: China posted a $30.2 billion deficit after a $30.2 billion shortfall in October, Japan a $5.6 billion deficit after a $5.3 billion deficit, and OPEC a $1.1 billion surplus after a $400 million surplus.
The November surplus with OPEC before adjustment was $1.7 billion, the highest on record. November imports from Canada were $22.7 billion, their lowest since July 2010, reflecting lower commodities prices.
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