Trade gap narrows -- a nice surprise

Posted Dec 10th 2009 10:20AM by Mark Fightmaster
Filed under: Good news, Economic Data

According to the Commerce Department, the U.S. trade deficit narrowed by 7.6% in October to $32.9 billion as exports increased faster than imports. Analysts had expected the trade gap to widen to show a deficit of $37 billion. The trade deficit for the year now stands at $304 billion, which is down from $610.8 billion this time last year.

The biggest reason for the lower deficit was a decrease in the importing of crude oil. That said, the trade deficit with China continued to increase, expanding to $22.7 billion in October, compared to $22.1 billion in September. The current deficit with China is at its highest level since last November. The year-long deficit with China is now $188.5 billion.

Does this news mean that the economy is turning around? Not necessarily, as it more than likely means that we have seen a reduction in the need for crude oil, leading to a drop in the trade deficit. Of course, this reliance on foreign oil is a good sign, but it may simply stem from the new "green conscience" in the United States.

Of course, if this new green trend is a way of living and not just a passing fad to placate Al Gore, then we could see the trade deficit continue to narrow.

Tags: crude oil, economic recovery, inthenews, trade deficit

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Reader Comments (Page 1 of 1)

12-10-2009 @ 11:23AM

Virgil Bierschwale said...

Did it really?

Perhaps we should take a look at the goods and services in more detail and while we're at it, lets add in advanced technology because that is a very large portion of the GDP

http://keepamericaatwork.com/?p=6077

You might find this interesting

Regards,

Virgil
http://www.KeepAmericaAtWork.com