United States, Canada Both Ran Trade Deficits In November

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Meanwhile, here are the major economic headlines from the last week:

• The U.S. goods and services trade deficit improved in November, declining $16.3 billion from $77.8 billion in October. November exports down $5.1 billion while imports were $21.5 billion less than October imports. The November decrease in the goods and services deficit reflected a decline in the goods deficit of $15.3 billion to $84.1 billion and an increase in the services surplus of $1 billion to $22.5 billion. In the first 11 months of 2022, the goods and services deficit is up $120.1 billion, or 15.7 percent, from the same period in 2021. Read the full report here.
• According to Statistics Canada, the country’s trade balance turned from surplus to deficit in November 2022. The value of exports dropped 2.3 percent, while the value of imports declined 2.1 percent. The resulting deficit totaled nearly $41 million. November was only the second time in 2022 that Canada ran a trade deficit. Eight of 11 export categories posted declines in November, including energy products, which fell 4.7 percent from October. Read the full report here.
• The S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) fell to 49.2 in December from 49.6 in November. The index has declined for seven months in a row and December’s reading was the fifth straight month the index was below the 50 threshold that marks contraction in the sector. Readings for output and new orders both fell, but the employment index did improve. Read the full report here.
• The Institute for Supply Management’s PMI for the United States registered 48.4 percent, or 0.6 percentage point lower than in November and the lowest reading since May 2020. The new orders and production indices both fell, but the employment reading did return to expansion territory. Read the full report here.
• The U.S. economy added 223,000 total jobs in December 2022 while the nation’s unemployment rate fell to 3.5 percent. Manufacturing employment growth was somewhat slower than in November, but still increased by 8,000 last month. Overall in 2022, manufacturers hired 379,000 workers in 2022, the most the sector has added since 1994. In related news: During the week that ended December 31, 2022, 204,000 individuals filed for federal unemployment benefits for the first time, a decrease of 19,000 from the previous week. The four-week moving average of continuing claims also fell, but the number of people who continued to receive unemployment benefits rose.