November trade deficit rises 10.4% as exports fall

[Valin]

Hot Air:

Ed Morrissey
1/13/12

Wonder how we could have gotten stuck at a 2.0% GDP growth rate in Q4? Novembers import and export numbers might tell a big part of the story. The trade deficit jumped more than ten percent as American exports fell, while import purchases driven by oil shot upward, while the year-on-year trade deficit rose almost 9%:

(Snip)

Oil prices increases can explain the increased import numbers, but only in part. Industrial supplies imports increased $2.7 billion, for instance, the largest increase in the report, followed by automotive vehicles, parts, and engines, and then capital goods. That could be a sign of catching up from the supply-chain issues created by the tsunamis in Japan at the beginning of the year, but most of that should have already taken place.

(Snip)

It’s possibly true that we had such a big jump in consumer demand that it benefited both imports and domestic producers. Then again, the overall GDP for Q4 was … 2.0%, which doesn’t indicate that much of a boost in demand. It looks more like American manufacturers struggling with competitiveness abroad and at home, while importers gained some ground in a weak economy. That’s not the end of the world, and certainly this could turn around with the right economic policies in place — especially in energy production. However, our current administration isn’t taking those steps, so we can expect more mediocre-to-lousy news in the near future on the trade deficit and American competitiveness.



Someone more partisan/ideological than I might point out, this was not exactly the Change we Hoped for....so I won't say that.