U.S. trade deficit widens sharply on record high goods imports -Breaking
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© Reuters. FILEPHOTO: Two shipping containers, one labeled “China Shipping”, and the other “Italia”, were stacked at Boston’s Paul W. Conley Container Terminal on May 9, 2018, U.S.A. REUTERS/Brian SnyderWASHINGTON, (Reuters) – The U.S. trade gap widened in November due to record goods imports. This suggests that trade will likely continue to be a factor in economic growth for the fourth quarter.
On Thursday, the Commerce Department reported that trade deficit rose 19.4% to $80.2 million in November. Reuters polled economists and forecast a deficit of $77.1 billion.
The increase in goods imports was 5.1%, reaching an all-time record $254.9 Billion. It is likely that congestion at ports has eased. Imports overall increased by 4.6% to $304.4 million
Industrial supplies and raw materials led the large increase in imports. The strong rise in imports of consumer goods and motor vehicle parts and engines was accompanied by a sharp increase in imports.
The value of exports to goods decreased 1.8%, reaching $155.9 million. The declines in industrial supplies and material, as well capital goods, dragged them down. Transport and travel boosted the growth in services exports. Exports rose 0.2% to $224.2 trillion in November.
Five quarters straight have seen a decline in GDP growth due to the trade deficit. Estimates of fourth quarter GDP growth at an annualized 7.4% rate are available. 3.3% was the pace of economic growth in third quarter.
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