The U.S. trade deficit unexpectedly grew in November, a drag on economic growth, although the gap’s widening was driven by a surge in consumer goods imports, which gives a positive signal for consumer spending.
The Commerce Department said on Friday the trade gap increased 16 percent in November to $48.7 billion.
Analysts were expecting the deficit to shrink to $41.3 billion, so the report could lead some economists to trim their forecasts for economic growth in the fourth quarter.
Net imports suck cash out of the economy, subtracting from gross domestic product.
The trade deficit was the widest since April, and its expansion was driven by a 3.8 percent increase in imports, the largest gain in eight months.
Imports of consumer goods rose by $4.6 billion, while imports of petroleum products fell by $870 million. That might point to firmer consumer demand, which is the main engine of the U.S. economy.
“That might point to ... “ I think somebody is trying to gold plate a turd. Gee, I wonder why?
As far as petroleum products are concerned, I think a better indicator would be petroleum products purchased. That way we can see what the economy is actually doing, instead of getting false hopes because the balance between imports and domestic production may have shifted a tiny bit. Still, if domestic production is up some, that is a good sign. But if overall demand is still low, that’s a stronger negative sign.
Let’s cut the carp, m’kay? I’m so tired of these fishy “unexpected” numbers.
At this point it really depends what field your in as to whether its still a recession or not. Guv workers are all happy and well fed,also most health care folks are fine and many other areas are doing fine. A family friend went to North Dakota from Seattle for work( heavy equipment operator) and he’s doing great.Alas, if your niche is not on the list it is a rotten time to be living in many ways but at least we ain’t Greece,Spain,Portugal,Bulgaria,Ireland etc etc.
Sorry for the silver lining shit but it needs to be said on occasion.
Oh, one more thing;Obama is a worthless mutherfucker and I hope AF1 falls from the sky in a freak EMP storm.