November 2016 International Trade (General)

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The goods and services deficit was $45.2 billion in November, up $2.9 billion from $42.4 billion in October. November exports were $185.8 billion, $0.4 billion less than October. Imports were $231.1 billion, $2.4 billion more than October.

The November increase in the goods and services deficit reflected an increase in the goods deficit of $3.4 billion to $66.6 billion and an increase in the services surplus of $0.5 billion to $21.4 billion.

Year-to-date, the goods and services deficit decreased $4.9 billion, or 1.1 percent, from the same period in 2015. Exports decreased $56.6 billion or 2.7 percent. Imports decreased $61.4 billion or 2.4 percent.

Goods by Selected Countries and Areas

The November figures show surpluses, in billions of dollars, with Hong Kong ($2.5), South and Central America ($2.4), Singapore ($1.0), Brazil ($0.8), and United Kingdom ($0.1). Deficits were recorded, in billions of dollars, with China ($28.4), European Union ($13.8), Japan ($5.7), Mexico ($5.7), Germany ($5.3), Canada ($3.2), Italy ($2.2), South Korea ($2.2), OPEC ($1.9), India ($1.8), Taiwan ($1.3), France ($1.3), and Saudi Arabia ($0.2).

* The deficit with Canada increased $1.5 billion to $3.2 billion in November. Exports decreased $0.7 billion to $21.3 billion and imports increased $0.9 billion to $24.5 billion.

* The deficit with the European Union increased $0.9 billion to $13.8 billion in November. Exports decreased $1.3 billion to $21.0 billion and imports decreased $0.4 billion to $34.8 billion.

* The surplus with Brazil increased $0.7 billion to $0.8 billion in November. Exports increased $0.7 billion to $3.2 billion and imports decreased less than $0.1 billion to $2.4 billion. 

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On a global scale, data compiled by the Netherlands Bureau for Economic Policy Analysis showed that world trade volume shrank 1.1% in October (-0.7% year-over-year) while prices rose by 0.4% (-1.8% YoY). October’s price index was 21.1% below the August 2011 peak; price index changes are almost perfectly (but inversely) correlated with changes in the value of the U.S. dollar.

The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.