By Courtney Schlisserman Jan. 12 (Bloomberg) -- The trade deficit in the U.S. widened in November more than anticipated as imports climbed faster than exports, pointing to a rebound in global demand that is fueling growth. The gap expanded 9.7 percent to $36.4 billion from a revised $33.2 billion in October, Commerce Department data showed today in Washington. Imports increased 2.6 percent, reflecting a jump in oil prices, while exports rose to the highest level in a year. Increases in spending by American businesses and consumers indicate purchases of foreign goods will keep rising in coming months. At the same time, a 12 percent drop in the dollar and growing economies overseas mean U.S. sales abroad by companies such as United Parcel Service Inc. and United Technologies Corp. may also improve, giving factories and the economy a lift. “There’s continued strong export growth ahead,” said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts. “On the import side, it’s logical that if U.S. companies are no longer running down their inventories that they’re going to need to import more.” Stock-index futures were down after the report, depressed by lower-than-anticipated earnings at Alcoa Inc. and China’s move to raise bank reserve deposits. The contract on the Standard & Poor’s 500 Index was off 0.7 percent to 1,134.9 at 8:48 a.m. in New York. Median Forecast Economists forecast the deficit would widen to $34.6 billion from a previously estimated $32.9 billion in October, according to the median of 76 projections in a Bloomberg News survey. Estimates ranged from gaps of $31 billion to $38.2 billion. Excluding the influence of prices, which are the figures used to calculate gross domestic product, the trade gap increased to $40.7 billion in November from $38.3 billion the prior month. The average gap for the quarter so far, at $39.5 billion, is little changed from the third-quarter average of $39.4 billion, indicating trade will not have much influence on economic growth in the last three months of the year. Exports increased 0.9 percent, the seventh consecutive gain, to $138.2 billion in November, reflecting increasing demand overseas for food and American-made automobiles and semiconductors. The dollar is down 12 percent since reaching a five-year high in early March against a basket of currencies from the nation’s biggest trading partners. Soybeans to China Demand for American goods from China climbed to a record $7.3 billion, led by surging purchases of soybeans due to a drought in Argentina, according to the Commerce Department. The increase caused the U.S. deficit with the Asian nation to fall 11 percent to $20.2 billion. American-made automobiles and parts, semiconductors and industrial machines were also in demand globally in November, today’s report showed. The increase in vehicle sales mainly reflects cross-border trade with Canada and Mexico to satisfy North American production. Growing economies overseas and the lower dollar are helping companies such as United Technologies, the maker of Pratt & Whitney jet engines and Otis elevators. The Hartford, Connecticut-based manufacturer last month forecast 2010 per-share profit would increase at least 7.3 percent, in line with analyst estimates, because of cost cuts and growth in emerging markets. Rising Profits The company, which garners more than 60 percent of sales outside the U.S., sees improvement in emerging markets in regions including Asia, Chief Executive Officer Louis Chenevert told investors at a meeting on Dec. 10. The Otis unit announced two contracts Dec. 8 to supply, install and maintain 1,300 elevators in Singapore public housing. Manufacturing in the U.S. expanded in December at the fastest pace in more than three years, the Institute for Supply Management said Jan. 4. Other reports showed factories in Europe and in China also strengthened last month. The need to prevent inventories from falling even more as sales improve, and the global economic rebound, which is pushing up commodity costs, are contributing to the increase in imports. Imports advanced 2.6 percent to $174.6 billion. Today’s report estimated petroleum prices rose to $72.54 a barrel in November, the highest level since October 2008. The increase in costs more than offset a drop in volumes as the U.S. imported 245 million barrels in November, the fewest since February 1999. Americans also bought more consumer goods, computers and telecommunications equipment from overseas, signaling a revival in overall demand and business investment. Economists at JPMorgan Chase & Co. and Credit Suisse in New York are among those projecting the world’s largest economy grew by at least 4 percent at an annual rate in the last three months of 2009 after expanding at 2.2 percent pace in the third quarter. The U.S. isn’t the only economy gaining speed. The International Monetary Fund has said it will probably raise its estimate for 2010 world growth from 3.1 percent. To contact the reporter on this story: Courtney Schlisserman in Washington at cschlisserma@bloomberg.net

Source