Jim,
I took a look at the recent trade Deficit numbers and the first thing that came to my mind is we, Americans, are buying less because our economy isn't so doing so great. I think this is a negative not a positive for our economy like the spinmeisters will try and tell us. With many companies around the world the US is still the largest consumer.
*** From WSJ Online *******
Separately, the U.S. trade deficit narrowed more than expected in July as businesses sent a record amount of cars overseas while importing fewer consumer goods such as toys and televisions.
The gap in international trade of goods and services narrowed to a seasonally adjusted $34.55 billion in July from a revised $36.75 billion in June, the Commerce Department reported. The June deficit was previously reported at $37.16 billion.
Economists were expecting to see a $36.8 billion trade deficit.
The July trade report showed that imports fell by 1% during the month to $117.78 billion, while exports, which have been up for the last five months, rose 1.3% to $83.23 billion.
Exports of capital goods rose by $143 million to $25.28 billion, led by $3.3 billion worth of civilian aircraft exports. The gain in aircraft exports -- a particularly volatile category because of the high prices involved -- was the largest since October 1998. The U.S. exported a record $7.1 billion worth of cars and automotive parts and engines in July.
The decline in imports was led by a $583 million drop for consumer goods, which includes toys, televisions and household appliances. Imports of capital goods, like airplanes, telecommunications equipment and computers fell by $263 million. (this is the US consumer not consuming) The declines, however, were partly offset by a record gain in imports of food, feeds and beverages -- by $109 million to a record $4.24 billion.
The overall import decline was partly offset by gains in petroleum imports. The unit price for a barrel of crude petroleum rose 42 cents to $23.72, while imports rose to 9.28 million barrels per day from 9.2 million in June. The total value of all energy-related petroleum products rose in July to $8.79 billion from $8.39 billion in the previous month.
The report showed that deficits with major trading partners expanded. The deficit with Mexico widened to $3.37 billion and was the second widest on record. The deficit with Canada was $4.41 billion from $3.49 billion in June. The trade deficit with Western Europe widened to a record $10.96 billion from $7.12 billion. The deficit with China hit another record, widening to $9.34 billion from $8.53 billion. Bilateral trade data aren't seasonally adjusted.
FT |
