November U.S. trade deficit falls to $40.4 billion on declining imports

Economist Peter Dawson says there are clear signs of a U.S consumer pull-back in the November trade deficit statistic. "U.S. consumers are in hunker-down mode. The great, but flawed global economic model of 'the world builds, and the U.S. consumes' is over," Dawson said. "There are strong indications the U.S. consumer has done a mind-shift, so the world is going to need growth engines outside the U.S. to pull out of the global recession."

In November, the U.S. registered import declines in: consumer goods -9.4%, autos -6.7%, capital goods -5.9%, and foods/feeds -5.6%. Export declines included: industrial supplies -13%, autos -11%, capital goods -3.8%, and consumer goods -1.7%. Exports of aircraft increased 7.1%.

Economists prefer that a nation run a trade surplus as opposed to a trade deficit, as it usually implies that a nation's goods are competitive on the world stage, its citizens are not consuming too much, and that it's amassing capital for future investment and economic goals.

Trade/Economic Analysis: U.S. imports, and the trade deficit, are likely to continue to trend lower in 2009, as lay-offs continue and amid low imported oil prices. Eventually, when the U.S. economy returns to a sustainable growth track, and if the nation passes an energy policy emphasizing conservation, the U.S. could start to run a trade surplus again.