Trade Deficit Drops $16 Billion in November 2022

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The goods and services deficit was $61.5 billion in November, down $16.3 billion from $77.8 billion in October (revised) the U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today.* However, it was because November exports were $251.9 billion, $5.1 billion less than October exports; but November imports were $313.4 billion, $21.5 billion less than October imports.

In short, the US economy stopped buying more imports at an amount greater than its exports increased. Whether this is good or bad depends on your economic ideology.

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The November decrease in the goods and services deficit reflected a decrease in the goods deficit of $15.3 billion to $84.1 billion and an increase in the services surplus of $1.0 billion to $22.5 billion. Year-to-date, the goods and services deficit increased $120.1 billion, or 15.7%, from the same period in 2021. Exports increased $439.4 billion or 18.9%. Imports increased $559.5 billion or 18.1%.

The average goods and services deficit decreased $1.4 billion to $71.2 billion for the three months ending in November:

• Average exports decreased $3.3 billion to $255.8 billion in November.
• Average imports increased $4.7 billion to $327.0 billion in November.

Year-over-year, the average goods and services deficit decreased $3.7 billion from the three months ending in November 2021.

The automotive business wasn’t booming in keeping with the trend. Consider Year-over-year:

• Crude oil decreased $1.7 billion.
• Automotive vehicles, parts, and engines decreased $3.3 billion.
• Passenger cars decreased $1.6 billion.
• Other automotive parts and accessories decreased $1.0 billion.

The November figures show surpluses, in billions of dollars, with South and Central America ($5.3), Netherlands ($2.4), Hong Kong ($1.6), United Kingdom ($1.2), Australia ($1.0), Singapore ($1.0), Brazil ($0.5), and Belgium ($0.1).

Deficits were recorded, in billions of dollars, with China ($20.4), European Union ($19.5), Mexico ($10.9), Vietnam ($8.5), Germany ($7.2), Ireland ($5.6), Japan ($5.6), Taiwan ($4.1), South Korea ($3.7), Canada ($3.5), Italy ($3.4), Malaysia ($3.1), India ($2.3), Switzerland ($1.3), Saudi Arabia ($0.9), Israel ($0.7), and France ($0.6).

• The deficit with China decreased $5.8 billion to $20.4 billion in November. Exports decreased $0.1 billion to $13.5 billion and imports decreased $5.8 billion to $33.9 billion.
• The deficit with the European Union decreased $3.6 billion to $19.5 billion in November. Exports decreased $0.3 billion to $28.5 billion and imports decreased $3.9 billion to $48.0 billion.
• The deficit with Switzerland increased $0.8 billion to $1.3 billion in November. Exports decreased $1.8 billion to $3.0 billion and imports decreased $1.0 billion to $4.2 billion.

*All statistics are seasonally adjusted; statistics are on a balance of payments basis unless otherwise specified.