The US Trade Deficit - A Mixed Picture
Although the US trade deficit widened in April, the number ended up being better than expected. Furthermore, the March trade deficit was revised lower than originally reported.
While this result is certainly a positive for the US economy, longer-term trade dynamics paint a different picture. The good news is that the US net imports of oil are declining, as the nation's production ramps up (see discussion). The bad news is that the longer term trend in non-petroleum merchandise trade shows an increasingly larger deficit. Americans have not lost their taste for foreign made cars, phones, etc.
USA Today: - Imports grew ... 2.4% to $227.7 billion. Sales of foreign cars increased to $25.5 billion. Americans also bought more consumer goods, led by big gain in foreign-made cell phones.
It means that in the future, should fuel production in the US stumble for some reason, trade deficit will spike.
Source: Sober Look
About Sober Look
Sober Look Archive
|04/20/2015||Bank of Greece Expulsion From the Eurosystem Could Be Especially Damaging to the Currency Union||story|
|04/06/2015||Renewed Demand for Dollar Funding in the Eurozone||story|
|03/30/2015||Frenzied Speculative Activity in China's Equity Markets||story|
|03/16/2015||Stocks in China Soar as Hard-Landing Fears Resurface||story|
|03/10/2015||Global Commodities Under Pressure||story|
|03/06/2015||Debate Around the 2015 Rate Hike Intensifies||story|
|03/05/2015||An Update on Brazil’s Flagging Economy||story|
|03/03/2015||The Eurozone: On the Road to Recovery With a Lingering Risk||story|
|03/02/2015||China’s Rate Cut Insufficient: Investors Expect More PBoC Stimulus and Yuan Devaluation||story|
|02/23/2015||Energy Markets: Significant Volatility and Deleveraging May Lie Ahead||story|