The U.S. trade deficit widened more than expected in November, as surging oil prices helped imports to outgain exports.
The U.S. deficit in international trade of goods and services expanded 9.7% to $36.40 billion from $33.19 billion the month before, the Commerce Department said Tuesday. The October trade gap was originally reported as $32.94 billion.
The November deficit was bigger than Wall Street expectations for a $34.7 billion shortfall.
While exports have registered seven straight months of gains as economic growth has returned, the rise in oil prices has brought the trade deficit back up. After a temporary dip in October, oil imports rebounded in November.
U.S. exports in grew 0.9% to $138.24 billion, the highest level in a year, from $137.01 billion in October. Imports increased more sharply, meanwhile, rising 2.6% to $174.64 billion from $170.20 billion.
The U.S. bill for crude oil imports in Novemer rose to $17.81 billion from $17.44 billion the month before, as higher oil prices more than offset a drop in import volumes. The average price per barrel jumped $5.15 to $72.54, the highest since October 2008. Crude import volumes fell to 245.45 million barrels, the lowest level since February 1999, from 258.83 million.
The U.S. paid $22.97 billion for all types of energy-related imports, up from $22.45 billion in October.
Trade, which was one of the few bright spots during the recent recession, has been a drag on growth as imports have outstripped exports. Net exports subtracted 0.81 of a percentage point to gross domestic product in the third quarter, when the economy expanded at a 2.2% pace. It was the first negative contribution to growth in a year.
The real, or inflation-adjusted deficit, which economists use to measure the impact of trade on GDP, rose to $40.71 billion in November from $38.33 billion the month before, Commerce said Tuesday.
Crude oil and other petroleum products boosted overall imports of industrial supplies, which gained $2.08 billion in November. Imports of foreign-made consumer goods increased $1.36 billion, while purchases of capital goods like computers rose $1.22 billion.
Food and feed imports fell $157 million, while auto and related parts imports declined $54 million.
As for exports, U.S. sales abroad of food, feed, and beverages rose $1.28 million, boosted by soybean exports. Auto exports increased $714 million and sales of capital goods were up $360 million.
Consumer goods, including art and pharmaceuticals, decreased $719 million in November. Sales of industrial supplies fell $511 million.
By region, the U.S. trade deficit with China narrowed in November to $20.22 billion from $22.66 billion the month before. Exports to China rose by $469 million to a record $7.33 billion.
The deficit with Canada also fell to $1.42 billion from $2.09 billion, though trade gaps with other major trading partners expanded.
The deficit with Japan rose to $5.43 billion from $4.42 billion, while the shortfall with the euro area increased to $4.96 billion from $3.76 billion. The U.S. gap with Mexico increased to $5.14 billion from $4.55 billion, as well.
