Trade gap narrows
Lower oil prices trims deficit more than forecast in November from record levels.
January 12, 2006: 8:59 AM EST
NEW YORK (CNNMoney.com) - Lower oil prices cut the U.S. trade deficit in November from the previous month's record level, according to a government report Thursday that put the gap between imports and exports narrower than Wall Street estimates.
The Commerce Department reported that the November trade gap was $64.2 billion, compared with the revised $68.1 billion in October. Economists surveyed by Briefing.com had forecast the deficit would narrow to $66 billion in November.
The average price of for crude oil imports fell 7.3 percent in the month to $52.16, and decreases in the price of other energy products reduced total energy imports by $3.4 billion. That was a key behind the nearly $2 billion, or one percent, drop in imports.
The trade gap was also helped by a $1.9 billion, or nearly two percent, increase in exports, which took exports to a record $109.3 billion. A $694 million increase in civilian aircraft exports was a key to that record.
Still, even the lower than expected deficit in November was the third highest recorded, and would have been a record as recently as August.