Analysts at Nomura note that the US goods trade gap widened to $69.7bn in November from October’s $68.1bn and the deficit in November was wider than expectations (Nomura: $66.0bn, Consensus: $67.9bn).
“Goods exports rose strongly by 3.0% m-o-m. Strong demand from abroad likely supported exports from the US. On details, exports of autos jumped strongly by 7.5%, while exports of foods, feeds and beverages rose only modestly by 0.2% after falling sharply by 11.2% in October. Imports rose strongly by 2.7% m-o-m, consistent with healthy domestic demand.”
“Wholesale inventories increased 0.7% m-o-m in November with an upward revision to October. Retail inventories were up modestly by 0.1% m-o-m, following a 0.1% decline in the prior month. We expect inventory accumulation to add only modestly to Q4 real GDP growth after a strong contribution to in Q3.”