"As we improve and the rest of the world improves, exports and imports are both going to go higher"
- Brian Jones, a senior U.S. economist at Societe Generale
The trade deficit in the world's largest economy widened unexpectedly in November, as nation's retailers stocked up on imported goods for the holidays, while demand for foreign automobiles rebounded following a super storm Sandy. The gap widened 15.8% to $48.7 billion, reaching the highest level since April. Demand for consumer goods made overseas surged to a record $45.3 billion. At the same time, prices paid for goods imported into the U.S. declined 0.1% in December, while analysts predicted prices to rise by 0.1% last month. The report also showed that imports from the European Union surged 4.1%, while were 6.4% up from Germany. Overall, seasonally adjusted exports rose 1%.
"As we improve and the rest of the world improves, exports and imports are both going to go higher," said Brian Jones, a senior U.S. economist at Societe Generale in New York, whose forecast of $45 billion was the highest in the Bloomberg survey. "You end up having deterioration in the accounts because I think imports will grow faster than exports."
"We're going to have some weakness closing out this year and starting off next year," said Omair Sharif, a U.S. economist at RBS Securities Inc. in Stamford, Connecticut.
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