Europe’s troubles deepen U.S. trade deficit
Europe’s prolonged debt crisis is starting to take bite out of American exports, a troubling sign for domestic manufacturers and the broader economy.
The government said Friday that the U.S. trade deficit jumped 10% in November from the prior month, to $47.8 billion, the highest level since June.
The unexpectedly big increase came largely from a rise in oil imports. But there was also a sharp drop in U.S. exports to Europe and smaller declines to Asia and South America, where economies also are slowing a bit. American shipments of capital goods, industrial supplies and cars all dipped over the month.
With the latest data, the U.S. trade deficit totaled $513 billion in the first 11 months of 2011 -- already $3 billion more than for all of 2010, according to the Commerce Department. And America’s politically sensitive trade shortfall with China will set a new record in 2011, as it is on pace to reach about $300 billion for the year.
Significantly, the deficit in U.S. trade in advanced technology goods also rose sharply last year. Through November, American exports of high-tech products amounted to $261 billion, but imports of such goods hit $352 billion.
The worsening trade numbers follow a report earlier this week showing retail sales were soft in December. Taken together, the data suggest some weakening in domestic and overseas demand, tempering the greater optimism recently that the long-sluggish economy and job market are gathering a head of steam.
