Trade Deficit Soars in Nov.; Imports at High

The trade deficit shot up to $15.5 billion in November as American exports of aircraft, computer equipment and farm products fell sharply while imports climbed to an all-time high.

The November deficit was up 14% from a revised October figure of $13.6 billion, the Commerce Department said Thursday. U.S. manufacturers continued to be battered by the global financial crisis, which has cut deeply into their export sales while triggering a flood of cheaper imports into the United States.

In fact, with one month still to be counted, the U.S. trade deficit in goods and services has already hit an all-time high of $153.9 billion, surpassing the mark of $153.4 billion set in 1987.

After December is counted, the deficit for the year would probably climb to about $164 billion, far above last year’s $110 billion. And economists are predicting even worse news for 1999 as recessions in more than one-third of the globe cut into U.S. exports and as beleaguered Asian countries try to export their way back to prosperity by shipping goods to America.

In a separate report, the Labor Department said that the number of Americans filing new claims for unemployment benefits fell by 14,000 last week to 346,000. The decline was in line with expectations and left the four-week moving average for claims at 358,500. While that was the highest level since mid-July, analysts say labor conditions still remain good.

The trade figures indicate that the surge in steel imports had begun to abate in November although steel imports for all of 1998 are still far ahead of the 1997 pace.

For November, total U.S. imports rose 0.4% to an all-time high of $94.1 billion, reflecting large increases in imports of computer chips, telecommunications equipment, autos and furniture.