Trade deficit makes surprising jump, rises 7.7% in Nov. [View All]

By Sue Kirchhoff, USA TODAY
WASHINGTON — The trade deficit unexpectedly surged 7.7% to a record in November, as oil imports jumped and exports dropped despite a weaker dollar, which makes American goods cheaper overseas.
The Commerce Department said the trade deficit, which economists had expected to decline from October's $56 billion, instead rose to $60.3 billion. The trade deficit for the past 12 months is more than $600 billion, about a quarter of that with China.

"We now have the Grand Canyon of trade deficits," says Joel Naroff, president of Naroff Economic Advisors.

The bleak figures prompted some economists to cut their U.S. economic growth estimates. Steve Stanley of Greenwich Capital Markets says the economy likely expanded 3% in the fourth quarter of 2004, down from his 4% estimate.

The U.S. dollar fell against other currencies after the report. The data came as the Economic Policy Institute, a pro-labor think tank, issued a report showing the trade deficit with China cost 1.5 million U.S. jobs since 1989.

http://www.usatoday.com/money/economy/trade/2005-01-12-trade-deficit-nov_x.htm