The S&P 500 (SPX) is falling on Thursday after the Commerce Department provided a disappointing trade balance update.
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New trading tool for QQQ bullsIn November, the U.S. trade deficit nearly doubled to $56.8 billion from $29.2 billion, above the consensus estimate of $44 billion. The data was delayed due to last year’s government shutdown.
During the month, imports increased by 5% to $348.9 billion, while exports fell by 3.6% to $292.1 billion.
Rising Imports Pressure Economic Growth
Rising imports are bad news for gross domestic product (GDP) because they increase the trade deficit, meaning more spending flows overseas rather than contributing to domestic growth. The growth in imports was led by pharmaceuticals, computers, computer accessories, and semiconductors.
Despite the month-over-month rise, November’s trade deficit remains relatively low compared to the past three years.
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