January 21, 2021
The trade deficit for November widened by $5.0 billion from a deficit of $53.1 billion to a deficit of $68.1 billion. But what is important to us that both exports and imports rose in November which is a sign that both the U.S. economy as well as the global economy are in the process of recovering. The deficit widened because imports rose more sharply than exports. Specifically, exports rose 1.2% in November which is the sixth consecutive increase and reflects the pickup in growth overseas. Imports climbed by 2.9% in November for its sixth consecutive increase which is an indication of the pickup in economic activity in the U.S..
The best gauge of global trade lows is the change in the total of both exports and imports. Both categories have turned upwards in each of the past six months.
The trade deficit in real terms widened by $6.6 billion in November to $96.5 billion after having widened by $2.2 billion in October.. The deficit in real terms is important because that is what goes into the GDP calculation.