U.S. Trade Gap Grows

The U.S. trade deficit increased to the highest point in 10 months from a higher demand of imports in an improving U.S. economy.

Supporting the belief that U.S. manufacturers will be bolstered from a recovering global economy, the number of exports rose as well on the back of a weaker dollar.

The Commerce Department reported that the trade gap jumped 9.7 percent to $36.4 billion in November on Tuesday. Economists had predicted a smaller imbalance of $34.5 billion for November.

In the seventh consecutive month of increase, exports gained by 0.9 percent to $138.24 billion boosted by American automobiles, industrial machinery and farm products. Imports grew a quicker pace with a 2.6 percent jump. Petroleum imports increased the most of any industry at 7.3 percent.

Last year saw the imbalance fall by half as the American consumer’s appetite for foreign products waned during the recession.

The U.S. exports to China hit an all-time high in November narrowing the deficit between the two countries by 10.8 percent to $20.2 percent. The deficit with China remains the largest for the U.S., but is down nearly 16 percent from the same period last year.

Economists are anticipating strong growth for exports in 2010 to aid the manufacturers and overall economy. Imports are expected to rise in the coming months as well, but exports will continue to rebound as the economy recovers and the dollar weakens

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