Credit, Economy and Financial News from TruckingFactor.com

Weak Demand for Oil Pushes Trade Deficit Down Significantly

The U.S. trade deficit plunged to its lowest level in five years in November as the lingering recession cut demand for oil by a record amount. The Commerce Department reported that the deficit fell to $40.4 billion in November, a 28.7% drop from $56.7 billion in October. The decrease left the deficit at its lowest level since November 2003. The deficit through November is running at an annual rate of $688.2 billion, down from the 2007 imbalance of $700.3 billion. The 2007 deficit represented the first decline after five years of record highs. The deficit is expected to fall further in 2009 as the weak economy saps demand for imported goods.

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Date Last Updated: 01/15/2009