The trade deficit of the United States increased the most in 34 years in November. The U.S. foreign trade deficit rose by 94.6 percent month-on-month to USD 56.8 billion (CZK 1.2 trillion). The increase was the highest in nearly 34 years, driven by strong imports of capital goods, likely caused by increased investment in artificial intelligence (AI). This follows data released today by the U.S. Department of Commerce. The sharp rise in the deficit could prompt economists to lower their estimates for gross domestic product (GDP) growth in the fourth quarter.
Largest increase since 1992
The percentage increase in the deficit was the highest since March 1992. Economists surveyed by Reuters had expected the deficit to rise to USD 40.5 billion. The report was released with a delay due to reduced operations of federal agencies caused by the lack of approved funding.
Imports rose by five percent compared to October, reaching USD 348.9 billion. Imports of goods increased by 6.6 percent to USD 272.5 billion, with capital goods imports rising by USD 7.4 billion to a record level. This was driven by strong growth in imports of computers and semiconductors. Imports of computer accessories declined. Imports of consumer goods also increased, mainly due to higher imports of pharmaceutical products.
Weaker exports and impact on GDP
Exports fell by 3.6 percent in November to USD 292.1 billion. Goods exports dropped by 5.6 percent to USD 185.6 billion, mainly due to lower exports of industrial supplies and materials, non-monetary gold used in jewelry production and industry, other precious metals, and oil. Exports of consumer goods were also lower.
Since the beginning of the year, the deficit in trade in goods and services has increased year-on-year by 4.1 percent to USD 32.9 billion. Exports rose by 6.3 percent to USD 185.7 billion, while imports increased by 5.8 percent to USD 218.6 billion.
Source: ČTK
