U.S. Trade Deficit Hits Record $97B In November 2021

The US trade deficit in goods mushroomed to a record in November as imports surged and exports slipped, Dan Burns reported for Reuters.

Photo Insert: Trade has been a drag on gross domestic product (GDP) growth for five straight quarters, while inventories added to output in the third quarter.

The goods trade deficit widened last month by 17.5% to $97.8 billion from $83.2 billion in October, the Commerce Department said on Wednesday. That exceeds the previous record deficit set in September of $97 billion.

Goods exports declined 2.1%, while imports rose by 4.7%. The report also showed wholesale inventories climbed 1.2% last month. Retail inventories increased 2.0%. Retail inventories, excluding autos, which go into the calculation of gross domestic product, edged up by 1.3%

The economy grew at a 2.3% annualized rate in the third quarter, a step-down from earlier in the year but activity has rebounded in the fourth quarter. Trade has been a drag on gross domestic product (GDP) growth for five straight quarters, while inventories added to output in the third quarter.

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