US exports increased in November to their highest level on record, but imports rose faster, pushing the trade gap to its widest in nearly five years, according to data released Friday.

The monthly trade report was full of records that signal the recovery in the US and world economies, but the growing US deficit could still subtract from GDP growth in the final three months of the year.

Rising oil prices accounted for a big chunk of the increase in the trade deficit, which rose $1.6 billion to $50.5 billion compared to October, the Commerce Department reported. The consensus forecast among economists was for the deficit to decline to $47.9 billion.

Exports of US goods and services jumped $4.4 billion to $200.2 billion, the most ever measured, pushed by a record $65.7 billion in services exports, according to the report.

But imports surged $6 billion to $250.7 billion, also the highest ever.

The gain was led by oil imports which jumped $1.4 billion to nearly $17 billion, as the average price for crude rose to $50.10 a barrel, the highest since July 2015.

For the January-November period the US trade deficit increased by $53.4 billion or 11.6 percent over the same period of 2016, to $513.6 billion.

The deficit in goods with China rose to its highest level in two years to $35.4 billion, and for the year-to-date was $344.4 billion, $25 billion higher than in the comparable period of 2016.

The gap with Canada and Mexico also widened in the January-November period, to $15.3 billion and $65.7 billion, respectively

 

Source: AFP