US Trade Deficit Sees Largest Increase in Decades
The US trade deficit widened in November at its fastest pace in nearly 34 years, driven by a surge in imports of capital goods linked to the artificial intelligence investment boom, which could prompt economists to lower their fourth-quarter growth forecasts.
The deficit jumped 94.6% to $56.8 billion, the largest increase since March 1992, according to the Bureau of Economic Analysis and the Census Bureau of the US Commerce Department.
Lower Expectations and Delayed Release
Economists polled by Reuters had forecast a deficit of only $40.5 billion, but the figures were significantly higher. The report's release was delayed due to the 43-day US government shutdown.
Imports Jump and Goods Changes
Imports rose 5% to $348.9 billion, while goods imports increased 6.6% to $272.5 billion. Capital goods imports hit a record high of $7.4 billion, boosted by a strong increase in computer and semiconductor imports, while computer peripheral imports fell by $3 billion.
Consumer goods imports also rose by $9.2 billion, supported by pharmaceuticals, which have seen significant volatility, possibly due to U.S. tariffs, while industrial supplies imports declined by $2.4 billion.
U.S. Exports Decline
Exports fell 3.6% to $292.1 billion in November, while merchandise exports declined 5.6% to $185.6 billion. These figures were impacted by a $6.1 billion drop in exports of industrial supplies and materials, primarily due to a decline in physical gold and other precious metals, as well as a $1.4 billion decrease in crude oil exports.
