WASHINGTON – The U.S. international trade deficit declined by $100 million to $38.3 billion in November, the third consecutive deficit decline and the smallest deficit since January, the Commerce Department reported Thursday.
Exports continued to charge ahead, increasing by $1.2 billion to $159.6 billion, the third consecutive monthly gain. Exports of consumer goods and foods, feeds and beverages both hit record highs.
Imports increased by $1.1 billion to $198.0 billion. Imports of foods, feeds and beverages and capital goods increased to record highs. Imports of advanced technology products increased for the third straight month, pushing this deficit to the largest on record.
Economists expected a $41.0 billion trade deficit for the month, according to the median estimate from Thomson Reuters.
October’s trade deficit was revised lower to $38.4 billion from $38.7 billion. The trade deficit in November 2009 was $35.3 billion.
This three-month string of trade deficit declines was the first since the December 2008 to February 2009 period.
The U.S. trade deficit has steadily declined from the year’s high of $50.1 billion reached in June. U.S. imports jumped in the second quarter of 2010 as exports remained flat.
The trade imbalance subtracted 3.5 percentage points from second quarter gross domestic product, which expanded 1.7%. The trade deficit in the third quarter subtracted 1.7 percentage points from GDP growth.
The November trade surplus in the service sector, which includes travel expenses, was $12.9 billion, the largest on record. U.S. service exports hit a record high in October.
The average price for an imported barrel of crude oil was $76.81 in November, the highest since May. The trade deficit with the Organization of the Petroleum Exporting Countries, OPEC, increased to $7.0 billion.
The trade deficit with China increased to $25.6 billion for the month. U.S. exports to China increased to $9.5 billion, the highest on record.
