Trade Deficit in U.S. Unexpectedly Fell in November

Source: Bloomberg

The U.S. trade deficit unexpectedly narrowed in November to the lowest level in 10 months as faster growth overseas and a weaker dollar boosted demand for American- made aircraft and industrial supplies like cotton.

The gap shrank 0.3 percent to $38.3 billion, less than the $40.5 billion median estimate of economists surveyed by Bloomberg News, Commerce Department figures showed today in Washington. Exports climbed to the highest level in more than two years.

Companies like General Electric Co. and Boeing Co. are benefiting from growing demand abroad and a lower dollar that is making American goods more competitive, propelling a factory-led economic recovery. The gain in exports exceeded an increase in imports that mainly reflected a price-driven surge in purchases of crude oil.

“It’s three months in a row that exports are up,” said Brian Jones, an economist at Societe General in New York. “We’re going to get a massive lift to fourth-quarter growth from the external sector.”



Read more: http://noir.bloomberg.com/apps/news?pid=20601068&sid=agTyv_5F1wfo

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Everything is always unexpected. It would be nice to read actual economic results sometime with the lede stating, "Suprising absolutely no one".

Anyway, 3 months in a row exports have been up. May it continue.

Of course it is like the whole "why are there no news stories of planes that land without problem, and on time?"

Unexpected is more likely a news story than expected. Hence there is going to be a bias towards "unexpected" headlines.

Still the export growth looks really good.

I mean, uh...damn.

Yeah, good data. Hopefully we'll see it as a leading sign signaling some manufacturing and trade job recovery in the next 6 months.

providing the items to be exported. 3 months of export growth is a very good sign.

Care to explain how that works exactly.

People not working are causing more US goods to be produced and shipped to buyers overseas?

This was common throughout from the 90's and on. A lot of it is used to "butter up" the public and electorate in order to impart on them a bullish-ness on "free trade" in preparation for upcoming free trade pacts they're going to want to ram through. Yes, exports are good news, but you must keep it in perspective: The import/export balance is so lopsided that you can bet they'll be offset by yet more "job killing" imports - and even if exports should rise a bit relative to imports, it is plainly obvious that at the present rate, it is all but impossible for them to "export" our way to even near parity, let alone surplus.

Another point...musing of mine based on following this issue for decades: Why are rare and small drops in our trade deficit rah-rah-ed and writ large in the corporate media? Why are ever larger increases in the trade deficit whitewashed away with happy talk from the same crowd? Hell, anytime a concern is issued at that point they'll glibly say it's nothing to be concerned about....cheap goods from China and all, right?

If exports are good for jobs, why do they not admit that imports are "job killing"?

They're spoon feeding the sheep.

It's become cheaper to buy American goods, and conversely, it is more expensive for Americans to import goods, because of the decline in the value of the dollar.

...not having the money to buy anything, foreign or domestic. The decline's at least partially due to a continuing deficit of aggregate demand.

When the trade deficit increases, the corporate media attempt to put on a happy face saying that this means people here have money to spend. They have a cover the bases answer for everything.