- The Trade Deficit for October came in at -$57.8 billion versus estimates of -$57.4 billion and -$57.1 billion in September.
- The Import Price Index for November rose 2.7% versus estimates of 2.0% and a downwardly revised 1.4% in October.
BOTTOM LINE: The US trade deficit widened in October as the value of imported crude oil rose to a record, Bloomberg said. Excluding petroleum, the trade deficit was the smallest since 2004. US exports rose .9%, led by commercial aircraft and industrial engine orders, hitting another record high. The narrowing of the trade deficit contributed 1.37 percentage points to the 4.9% gain in third quarter US GDP growth, the most since 1996. The US trade deficit should continue to shrink over the intermediate-term, which will help boost overall US economic growth, as energy prices fall and exports continue to make new records.
Prices of goods imported into the US rose in November, propelled by record oil prices, Bloomberg reported. Prices excluding petroleum rose .7%. Food prices actually fell .2% during the month. Excluding all fuels, prices rose .5% during the month and 3% over the last 12 months. Prices of imported automobiles, parts and engines rose .3% for a second month. Cost for imported consumer products excluding autos rose .2%. Import prices increases have now likely peaked for the intermediate-term and should begin to decelerate next month. The 10-year TIPS spread, a gauge of inflation expectations, is currently 2.31%, which is down from 2.48% less than two weeks ago.
No comments:
Post a Comment