In August, the U.S. trade deficit showed an unexpected drop of 3.5%. This shrinks the deficit to a mere $30.7 billion – rather than the $33 billion economists expected. Oil prices surged, but the amount of shipments fell precipitously. The increase in exports suggests that the global economy is working its way out o the doghouse.
Exports of goods and services pushed 0.2% higher in August to $28.2 billion. This was the fourth consecutive month of increases. American farm products, cars and parts, industrial engines and telecommunications equipment sales all contributed to the small upward move.
For the first eight months of 2009, the trade deficit stood at an annual rate of 357 billion – much lower than last year's $695.9 billion. The recession is credited with squashing our appetite for imported goods. The U.S. trade deficit with China crept down 0.9% to $20.2 billion for the month of August, with the year-to-date deficit totaling $143.7 billion – down 15.1% from the record levels seen for the same period in 2008.
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