In November, the US trade deficit showed a sharp contraction. The trade deficit came out at -$40.4B (from -$56.7B), while the consensus expected a figure of -$51.0B. Looking at the details, exports dropped by 5.8% M/M (from $151 538 to $142 803) and imports plunged by 12.0% M/M (from $208 228 to $183 245). Exclud-ing petroleum, the trade deficit narrowed from -$24.429 to -$21.057 in November, which indicates that part of the narrowing was due to lower oil prices. The trade balance figures show what is typical for periods of recession: sharp declines in both imports and exports.
Other: UK trade deficit widens due to a plunge in exports
In the UK, the trade deficit widened more than expected in November. The total trade balance came out at -£4 478, while the consensus expected a figure of -£3 700. The October figure was upwardly revised from -£3 867 to -£3 857. Exports dropped by 5.8% M/M in November, while imports fell by 1.8% M/M. These data in-dicate that the weakness of the pound was unable to boost demand for UK goods.
