empty
06.01.2022 05:07 PM
The US trade deficit increased by $ 13.7 billion in a month

The US trade deficit widened in November. The increase was due to an increase in the cost of imports. Retail made its contribution, making it almost impossible to fill shelves in retail areas for the sake of holiday shopping. The increased demand for foreign oil also contributed.

The US trade deficit increased by $ 13.7 billion in a month, but exports are also showing records

According to the Ministry of Commerce on January 6, the gap in trade in goods and services increased to $ 80.2 billion from the $ 67.2 billion revised in October. Earlier, experts suggested that the deficit was about $ 81 billion.

This image is no longer relevant

In turn, the volume of imports increased to $ 304.4 billion, and exports increased to $ 224.2 billion, which is also a record.

These figures are not adjusted for inflation. If we take the data adjusted for price increases, then in general, the trade deficit in November increased to $ 110.8 billion from $ 97.1 billion a month earlier.

Supply chains remain one of the main reasons for unsatisfied customer demand and price pressure.

However, a stronger dollar is also gently helping American importers, even though a surge in global inflation leads to higher costs. Thus, the inflation-adjusted dollar index against the currencies of some of its main trading partners strengthened in 2021 for the maximum in six years, which reduced the cost of imports.

But even without currency factors, low inventories compared to sales, supply chain failures and transportation problems continue to prevent manufacturers in the United States from meeting demand.

Meanwhile, the increase in commodity exports is a favorable sign. In particular, such an increase suggests that the importing states of American products are also slowly but surely recovering, which means they require more goods from the United States. That could make trade less of a drag on US economic growth in the coming months after it subtracted 1.26 percentage points from US gross domestic product since the outbreak of the fourth wave of coronavirus.

Nevertheless, experts point to the growing gap between imports and exports: the deficit of commodity trade, excluding services, has increased to a record $ 99 billion.

If we take the services segment, the positive balance here increased to $ 18.8 billion, which was the highest in five months. The 12.7% increase compared to a month earlier was the largest since September 2004 and also indicates a clear economic recovery.

Travel exports (spending by travelers within the United States) jumped by 36.4%, to $ 8.1 billion after travel restrictions were lifted, which is the highest since March 2020.

Travel imports (Americans' spending on overseas travel) have reached a pandemic peak of almost $ 7 billion.

The positive news is likely to further strengthen the dollar in today's session.

Egor Danilov,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

The Dollar Is No Longer King. What You Need to Know

Historically, the U.S. dollar has been the primary safe haven during crises such as wars, sanctions, and banking shocks; investors tend to flock to the dollar as their ultimate safety

Anna Zotova 00:59 2025-05-21 UTC+2

US Market News Digest for May 20

Despite the downgrade of the US credit rating and rising Treasury yields, retail investors remain active buyers of equities. Net purchases have surged to a record $4 billion, signaling confidence

Ekaterina Kiseleva 12:16 2025-05-20 UTC+2

Market Gains Modestly: Dow +0.32%, Nasdaq +0.02%, but Novavax Soars After Vaccine Approval

Dow Up 0.32%, S&P 500 Up 0.09%, Nasdaq Up 0.02% TXNM Energy Rises After Blackstone Deal Novavax Jumps After FDA Approval of Coronavirus Vaccine European Stocks Rise Slightly, as Utilities

Thomas Frank 11:18 2025-05-20 UTC+2

Bitcoin: What to Expect This Week. BTC Hits $107,000 – Can the Record Hold?

The leading cryptocurrency is fighting to maintain its position, even though it's not always smooth sailing. Currently, BTC is out in front, slightly simplifying the task of holding higher ground

Larisa Kolesnikova 00:40 2025-05-20 UTC+2

US consumption losing steam

In the upcoming week, Wall Street's attention will be focused on earnings reports from the largest US retail chains — crucial indicators of how changing trade conditions are impacting

13:30 2025-05-19 UTC+2

US Market News Digest for May 19

Despite encouraging statements about progress in trade negotiations and high-level diplomatic visits, forecasts for the S&P 500 remain restrained. Analysts point to the index's lack of growth compared

Ekaterina Kiseleva 12:20 2025-05-19 UTC+2

The American consumer is slowing down: What Target, Lowe's and Walmart are saying

Wall Street will be focused on earnings reports from the largest US retailers this week to gauge how changing trade conditions are affecting the economy and whether the recent stock

Thomas Frank 10:35 2025-05-19 UTC+2

US Market News Digest for May 16

Shares of Micron Technology are extending their steady rally, bolstered by encouraging technical signals. Investors are eyeing price targets at 117.34 and 137.12, making the stock attractive in both

Ekaterina Kiseleva 13:20 2025-05-16 UTC+2

STOXX 600 storms the peaks: where is the growth heading and what awaits investors

Cisco rises after raising its forecasts for the financial year UnitedHealth falls on the news that it faces a criminal investigation European STOXX 600 index is set for a fifth

Thomas Frank 11:22 2025-05-16 UTC+2

USD: Weak on the Surface – Strong at the Core. The Game Isn't Over, the Dollar Prepares an Unexpected Move

A new phase is beginning in the currency market, where economic fundamentals and geopolitical strategy shape the U.S. dollar's exchange rate. The U.S. administration is subtly considering the idea

Anna Zotova 00:39 2025-05-16 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback