Trade Balance Narrows

The nation's trade balance, reflecting weak cross-border activity, narrowed in November to $42.4 billion from a revised $44.6 billion in October. Exports fell 0.9 percent in the month to $182.2 billion with industrial supplies and consumer goods showing the most weakness. Imports fell 1.7 percent to $224.6 billion with both consumer goods and capital goods showing declines.

Despite low oil prices, the petroleum gap widened by $0.9 billion to $5.4 billion due to rising demand. The price of imported oil fell 88 cents to $39.24 for the lowest level since February 2009.

The trade gap with China narrowed by $1.7 billion in the month to $31.3 billion while the gap with Europe widened by $0.4 billion to $13.8 billion. The gap with Mexico narrowed by $1.2 billion to $5.2 billion.

The nation's fourth-quarter trade balance adjusted for inflation is still trending slightly above the third-quarter which will pull down GDP. But the takeaway from today's report is slowing global trade.

Recent History Of This Indicator:
The nation's trade deficit is expected to hold roughly steady at $44.4 billion in November. Weak global demand has been hurting exports while imports, despite strength in the dollar, have also been slipping in what may be a sign of slowing domestic demand. Last week's advanced data on November goods showed a narrowing in the deficit to $60.5 billion from $63.0 billion.