Trade deficit falls 2%, annual pace is the lowest since 2020 | Small businesses expect rising sales as NFIB index inches up | Report: Private firm struggles could disrupt supply chains
A drop in imported goods saw the US trade deficit shrink by 2% to $63.2 billion in November, raising hopes of an improved Q4 GDP reading. The unexpected narrowing of the US trade deficit was driven by a pickup in services exports and a slight decline in merchandise imports. The November data puts the US on track for the smallest trade deficit in 3 years after record deficits in 2021 and 2022.
The National Federation of Independent Business Small Business Optimism Index rose to 91.9 in December, marking the first increase in 5 months. Despite the increase, the gauge remains below its long-term average of 98, and NFIB said the uncertain economic outlook continues to weigh on the business environment. However, small-business owners anticipate a boost in sales over the next three months, with just 4% expecting lower sales, the lowest number in nearly two years.
Private US firms are struggling as earnings and profit margins are threatened by rising financing costs, according to a report from Marblegate Asset Management and Rapid Ratings. Private company bankruptcy filings jumped more than 250% last year from the previous year amid weak demand, inflation and rising fund costs. Larger firms have been more insulated, but could face disruptions and higher costs via the smaller firms they rely on as suppliers.
Economic conditions, including inflationary pressures, are the prevailing concern among manufacturing and distribution industry executives this year, according to research from consulting firm Protiviti. Attracting, developing and retaining top talent, cyber threats, uncertainty regarding the core supply chain ecosystem and increased regulatory changes and scrutiny round out the list.
Procurement leaders must take an "intelligence-driven approach" to avoid conflicts and disruption in the supply chain, says co-founder of The Smart Cube, Omer Abdullah. To combat this, Abdullah suggests nearshoring, though notes to add this into long-term planning, watching for geopolitical conflict and gathering information on companies and their ethical practices to decide which suppliers to use.
Logistics giant DHL Group has urged customers to examine inventory plans as shippers begin to avoid the Red Sea due to recent militant attacks on vessels. DHL and German logistics association DSLV said they expect relatively low overall economic impacts from the shift due to diversified maritime supply chains and the availability of cost-efficient air and rail freight options
Ecommerce beat in-person sales, video conferences, email and phone calls to become 2023's leading business-to-business sales channel for most participants in a Digital Commerce 360 poll. Senior Vice President Mark Brohan expects sustainability, artificial intelligence, dynamic pricing and predictive analytics will shape the market in 2024.
The odds that the US economy will achieve a soft landing appear to have increased, although economists at a recent American Economic Association meeting expressed some concerns about the longer term. In addition, Lorie Logan, president of the Dallas Federal Reserve, cautioned that it is still possible for inflation to rebound.
Consumers' holiday spending in November contributed to a $23.75 billion increase in borrowing during the month, with outstanding credit balances rising above $5 trillion for the first time, according to Federal Reserve data. The increase far exceeded what economists had forecast and included a $19.1 billion rise in revolving credit outstanding.
The National Association of Wholesaler-Distributors (NAW), representing the 8.2 trillion-dollar wholesale distribution industry and 6 million American workers, strongly opposes President Biden's renomination of Julie Su for Secretary of Labor. Read the full statement.
Fewer than 30 slots remain for the 2024 NAW Executive Summit, taking place from January 30 - February 1, 2024, at the luxurious Fairmont Hotel in Washington, D.C. Don't miss this exclusive opportunity to network with the best and brightest minds in the industry and gain a competitive edge with cutting-edge insights and actionable strategies on critical topics like innovation, business growth, operational excellence and more. Learn More.
