| Section 1: U.S. Trade The United States has historically run trade deficits (i.e., importing more than is exported) since the late 1970’s. This is largely due to U.S. trade deficits in manufactured goods. The U.S. goods trade deficit for the month of November was $85.5 billion, representing a monthly decrease of 16.3% from October and a 17.1% decrease from November of the previous year. Figure 1 shows a table of other notable U.S. trade partners and their balances with the United States for November. U.S. Census Bureau – International Trade Data |
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| Section 2: Manufacturing and Goods Production Manufacturing Employment The number of employees gained or lost within the United States’ goods sector allows us to better understand the state of domestic manufacturing. Total manufacturing employment in the U.S. was reported at 12.93 million workers for December of 2022, a 0.1% increase from November and a 3.0% increase from December the year before. As of this month, manufacturing employees account for 8.4% of the total United States workforce. Total construction and mining employees for December were reported to be 7.78 million (+3.1% YoY) and 0.60 million (+9.7% YoY), respectively. Bureau of Labor Statistics – Employment Situation New Orders of Manufactured Goods New orders of manufactured goods shows the total intended number of purchases of a U.S. product, providing insight into the strength of the U.S. manufacturing sector. Total new orders for November were reported to be $543.3 billion, a 1.8% decrease from last month and an 7.3% increase year-on-year. Other notable product sectors were: Primary metal manufacturing (iron, steel, and aluminum foundries) reported new orders of $20.0 billion for November, a 0.6% decrease from last month and a 1.9% increase year-on-year. Computer and electrical products manufacturing (computers, communications, and electronic components) reported new orders of $39.3 billion for November, a 0.1% increase from last month and a 5.7% increase year-on-year. Machinery manufacturing (engines, construction, and other machines) reported new orders of $24.3 billion for November, a 0.4% increase from last month and a 6.1% increase year-over-year. U.S. Census Bureau – Manufacturers’ Shipments, Inventories and Orders Report |
| Section 3: Economic Overview Inflation Inflation affects all facets of the economy, from consumer spending to business investment. The year-on-year growth rate of the consumer price index (CPI), a primary measure for inflation, was 6.5% for December 2022. Figure 2 shows the historical CPI growth rate (YoY) figures for the past 12 months. Bureau of Labor Statistics – Monthly CPI Report |
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| Unemployment and the Labor Force The unemployment rate for December was reported at 3.5%, a slight decrease from last month’s rate of 3.6%. Employment in the labor force increased by 717 thousand people, bringing the total employment in the labor force to 159.2 million for the month of December. Figure 3 shows historical unemployment rates for the last 12 months. Bureau of Labor Statistics – Current Population Survey |
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| National Budget Balance The U.S. budget balance was recorded as a $85.0 billion deficit for the month of December. Smaller budget deficits (or growing budget surpluses) tend to be signs of a strengthening economy, when the government can collect more tax revenue and simultaneously spend less on social programs. Table 4 shows historical budget deficits and surpluses for the U.S. for the past year. Bureau of the Fiscal Service – Monthly Treasury Statement |
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