US Trade Gap Widened in November

Posted January 13th, 2012 at 9:45 am (UTC-5)
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The U.S. says its trade deficit, a perennial problem for the world's largest economy, widened in November for the first time in five months.

The Commerce Department said Friday the trade gap jumped more than 10 percent to nearly $48 billion, with imports rising to an all-time high of nearly $226 billion. The record import total was driven by U.S. demand for oil and foreign-made cars, a sign some American consumers are starting to make big-ticket purchases.

Meanwhile, the country's exports dropped below $178 billion in November.

Government statistics showed the drop in demand for its products partly occurred because of a sharp fall in exports to the financially troubled eurozone, the 17-nation European bloc using the euro currency that is attempting to resolve its two-year governmental debt crisis. Europe purchases one-fifth of U.S. exports, but with the eurozone's stagnant economy nearing a contraction, American exports to the region could fall further.

The U.S. economy has been struggling to regain its footing after the 2007 to 2009 recession. Unemployment remains high, although businesses have started to hire more workers.