Updates

It's been nearly a year since I've updated this site. Over the course of next month, this site will be updated to include reports missing from last year and all new reports.

Wednesday, February 10, 2010

U.S. international trade deficit climes 10% in December

The BEA released data this morning on America's trade deficit, as of December: 


December exports of $142.7 billion and imports of $182.9 billion resulted in a goods and services deficit of $40.2 billion, up from $36.4 billion in November, revised. December exports were $4.6 billion more than November exports of $138.1 billion. December imports were $8.4 billion more than November imports of $174.5 billion.”

The Economist had this to offer:

As the economy recovers, both imports and exports are growing. But imports are growing faster, and America's trade deficit is therefore widening out from its low recession levels. Where current account deficits are concerned, public hand-wringing has overwhelmingly focused on China, and particularly on the effect its currency policy has on the relative price of its exports. But China is not driving rapid growth in the trade deficit. Imports to America from China returned to more-or-less normal levels as of December, but exports to China hit their highest level ever in that month. What is pushing up the trade deficit is petroleum imports.


 For much of the previous decade, the petroleum deficit hovered at a level around a third of the total trade deficit. It's now over half of the total trade gap.  American demand for petroleum is relatively inelastic, so rising oil prices will tend to push up oil imports and the deficit. And recession aside, oil prices have trended upward for most of the past decade. But for that America's current account would look a lot more balanced.

For the full press release from the BEA, visit: http://www.bea.gov/newsreleases/international/trade/tradnewsrelease.htm

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