Rising oil prices fuel U.S. trade gap

The U.S. trade deficit widened to $63.1 billion last November, an increase of 9.3% over October according to a report released by the U.S. Department of Commerce today. The gap, the largest in 14 months, was mainly due to the rising cost of oil. Exports showed a modest increase, up $600 million to $142.3 billion, mainly centered on an increase in service exports, which accounted for $500 million. The largest share of the increase was shown in transfers of U.S. military sales contracts, other transportation and travel, while the largest gains were made in the export of automobiles, foods and beverages. There was a notable decrease in the export of capital goods. The increase in exports was not large enough, however, to offset the increasing cost of imports. Imports of goods increased $5.9 billion, mainly reflecting a large increase in oil costs. Total imports of services increased $100 million, centered mainly in increases in technical and business services. Imports for the U.S. totaled $205.4 billion.