Summary
This morning's release of December import price data and November trade data from the Labor Department and the Commerce Department, respectively, produced the following results: Import prices declined 0.2% during December, while the November trade deficit fell $3.9 billion, to $64.2 billion. Despite the decline, the November deficit became the third largest on record.
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December Import Prices
* Today's Labor Department release indicated that overall import prices fell 0.2% during December. Excluding petroleum, import prices were unchanged during the month.
* Import prices for petroleum were down 0.9% in December. This followed a revised 9.1% decline in November.
* Year over year, the price of all imports was up 7.9%. Excluding petroleum, the figure was 2.4%, with petroleum prices showing a year-over-year increase of 42.5%.
November Trade Results
According to the Commerce Department, the nation's trade deficit (goods and services) in November declined to $64.21 billion, down $3.92 billion or 5.8% from a revised October deficit of $68.13 billion. (October's shortfall was originally reported as $68.89 billion.)
The five largest monthly deficits on record have all occurred during 2005, with November now assuming third place:
October 2005 $68.13 billion
September 2005 $66.00 billion
November 2005 $64.21 billion
February 2005 $60.42 billion
June 2005 $59.42 billion
For 2005's first eleven months, the trade deficit totaled $661.780 billion, an increase of $98.87 billion or 17.6% from 2004's comparable figure.
As is customary, I will publish a more detailed analysis of both of these key economic series.
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