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November Trade Deficit Slides 13%, Lowest Since October 2009, Exports Rise To Record

Tyler Durden's picture




 

Following October's disappointing bounce in the US trade deficit, it was only expected that the November data would come leaps and bounds ahead of the expected $40 billion print, instead sliding 12.9% to $34.3 billion from October's revised $39.3 billion - this was the lowest monthly trade deficit since October 2009. The delta was the result of a modest boost in exports, up $1.7 billion, to a record high of $194.9 billion, compounded by a more pronounced slide in imports, which were $3.4 billion less than October's $232.5 billion. Some other highlights: exports to China climbed to a record high (we certainly expect "matching" Chinese exports to the US to also rise to a record when reported next), while the US petroleum deficit was the lowest since May 2009 thanks to shale.

Charting US Trade:

And just with China:

Key increaseas and decreases of exports and imports:

Trade with some key trading partners:

  • The goods deficit with China decreased from $28.9 billion in October to $26.9 billion in November. Exports increased $0.1 billion (primarily soybeans and corn) to $13.2 billion, while imports decreased $1.8 billion (primarily toys, games, and sporting goods and apparel) to $40.1 billion.
  • The goods deficit with the European Union decreased from $14.3 billion in October to $10.1 billion in November. Exports decreased $0.2 billion (primarily artwork, antiques, stamps, etc. and organic chemicals) to $22.9 billion, while imports decreased $4.4 billion (primarily pharmaceutical preparations) to $33.0 billion.
  • The goods deficit with Canada decreased from $2.8 billion in October to $1.5 billion in November. Exports decreased $1.3 billion (primarily petroleum products and automobiles) to $25.7 billion, while imports decreased $2.7 billion (primarily crude oil) to $27.1 billion.

A visual summary from Bloomberg:

Breaking down the goods trade by category:

  • The October to November increase in exports of goods reflected increases in industrial supplies and materials ($0.7 billion); other goods ($0.5 billion); capital goods ($0.3 billion); and automotive vehicles, parts, and engines ($0.1 billion). Decreases occurred in consumer goods ($0.5 billion) and foods, feeds, and beverages ($0.1 billion).
  • The October to November decrease in imports of goods reflected decreases in industrial supplies and materials ($4.3 billion); other goods ($0.8 billion); foods, feeds, and beverages ($0.3 billion); and consumer goods ($0.1 billion). Increases occurred in automotive vehicles, parts, and engines ($1.1 billion) and capital goods ($0.9 billion).
  • The November 2012 to November 2013 increase in exports of goods reflected increases in industrial supplies and materials ($3.1 billion); capital goods ($1.2 billion); foods, feeds, and beverages ($1.1 billion); automotive vehicles, parts, and engines ($0.8 billion); other goods ($0.6 billion); and consumer goods ($0.5 billion).
  • The November 2012 to November 2013 decrease in imports of goods reflected decreases in industrial supplies and materials ($6.9 billion); other goods ($0.3 billion); and consumer goods ($0.3 billion). Increases occurred in capital goods ($2.2 billion); automotive vehicles, parts, and engines ($1.6 billion); and foods, feeds, and beverages ($0.2 billion)

And since the net impact of the plunge in the deficit means a higher Q4 GDP estimate by about 0.3% (and an offset of weaker Q1 GDP when the drop in imports will come back to haunt the US), it also means that the Fed will likely extract another $10 billion from the monthly QE flow at its next opportunity.

 

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Tue, 01/07/2014 - 09:50 | 4307633 VD
VD's picture

but shale is......what about Peak Oil¿ LOL!

Tue, 01/07/2014 - 09:54 | 4307648 akak
akak's picture

What, were you getting tired of your "Sylviasays" sockpuppet so you decided to go back to "VeneralDisease"?

I think the latter suits you better.

Tue, 01/07/2014 - 09:55 | 4307650 GetZeeGold
GetZeeGold's picture

 

 

We've also hit peak 40hr jobs.....but you can still work two 29.5 hour jobs....without the overtime that is.

Tue, 01/07/2014 - 10:06 | 4307687 Headbanger
Headbanger's picture

"The Fed will likely extract another $10 billion from the monthly QE flow at its next opportunity."

Bingo!

 

Tue, 01/07/2014 - 11:17 | 4307963 USA USA
USA USA's picture

Other than worthless dollars, what in the hell do we export to china, gold?

Tue, 01/07/2014 - 12:51 | 4308329 666
666's picture

We don't give China dollars, we give 'em something better: IOUs, aka treasurys!

Tue, 01/07/2014 - 09:56 | 4307654 Johnny Cocknballs
Johnny Cocknballs's picture

Meh, hold up - china not importing us corn is likely just the start of things they won't import. Sure right now its just gmo corn, but you can bet that pretty soon US warehouses will be stuck with pallets of moonpies, pennywhistles, and cock rings, and after that - all bets are off.

 

Stay thirsty, my friends.

Tue, 01/07/2014 - 09:57 | 4307655 unwashedmass
unwashedmass's picture

so how much of that was in gold and silver? amazing the side benefits of these manipulations, eh? 

Tue, 01/07/2014 - 10:04 | 4307675 MFLTucson
MFLTucson's picture

 

Another perfectly timed lie to run the market higher, the correction in this artificial market will not end till we reach implosion.

Tue, 01/07/2014 - 10:11 | 4307697 Stuck on Zero
Stuck on Zero's picture

That trade data makes the U.S. look like a Third World nation.  We export raw materials and import manufactured goods.

 

Tue, 01/07/2014 - 12:00 | 4308138 gookempucky
gookempucky's picture

Scrap is our biggest export--------precious metal scrap to be included.  The US system is just a giant junkyard.

 

http://www.gltaac.org/US-China-scrap-top-export

 

 

Tue, 01/07/2014 - 12:19 | 4308193 akak
akak's picture

Tearing up Trantor for its metal ... so sad.

Like picking the jewels off the corpse of a dowager.

Tue, 01/07/2014 - 13:04 | 4308399 Rubbish
Rubbish's picture

We have to load the returning ships with something. My buddy ship tons of scrap plastic back to China every month so they can make more toys for us. One mans trash.

Tue, 01/07/2014 - 10:29 | 4307768 Save_America1st
Save_America1st's picture

So that would mean QE down to 110 Billion per month?  They were actually QE'ing 130 Billion per month for about the last 7 months of 2013, so these 10 Billion "taper" moves are very well priced in and entirely insignificant.  If everything is so fucking great then end QE all together and start actually getting rid of all those Trillions of holdings the Fed has accumulated...

Oh wait...can't do that, huh???  Gee, why not, I wonder? 

And what exactly are we "exporting" so fucking much of these days other than oil, gold, inflation, and manufacturing jobs??? 

And when will these rosey GDP numbers actually be scrutinized to discover they're all a bunch of bullshit?  Will that be when the Fed goes back and re-revises our GDP once again from back to 1928?

I call bullshit on all of this...shit...so let's just call it what it is...more lies, more bullshit, and the Fed will continue to print Trillions until this whole Ponzi scheme finally collapses.  And that's when the shit is REALLY going to hit the fan in the U.S.

Keep stacking silver and gold, bitchez...once again, they have monkey-hammered the PM's this morning which is the only thing they can do to hold off a massive panic and stampede into PM's. 

So get it while there is still supply out there to be grabbed.  It's not going to be there forever, and eventually it's going to be priceless in terms of the worthless, stinking, fiat Benny Bucks.

Tue, 01/07/2014 - 11:11 | 4307942 Quinvarius
Quinvarius's picture

I don't think they are doing anything to stop the stampede into PMs.  They are just doing some pointless bizzare paper cargo cult dance.  If it works, the economy will magically recover.

Tue, 01/07/2014 - 11:03 | 4307911 Quinvarius
Quinvarius's picture

When you measure exports in devalued USD, of course they will rise.  I expect them to rise exponentially.  Units shipped is another matter.

Tue, 01/07/2014 - 11:29 | 4308008 Tabarnaque
Tabarnaque's picture

Surge in US exports to China... I guess that the Comex' gold is finally making its way to the Shanghai Gold Exchange!

Tue, 01/07/2014 - 11:53 | 4308113 GrinandBearit
GrinandBearit's picture

"Da plane boss... da plane!"

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