Despite of a stop in oil price-deterioration, the U.S. trade deficit continued to shrink in February narrowing to a new-year low and falling to the lowest level since November of 1999. The difference between what we export and import, shrank by 28% to $26.3 billion from January’s revised $36.2 billion, the Commerce Department said Thursday.
On a Y/Y basis change in exports of goods reflected decreases in industrial supplies and materials ($9.7 billion); capital goods ($6.1 billion); automotive vehicles, parts, and engines ($4.8 billion); foods, feeds, and beverages ($1.7 billion);other goods ($0.7 billion); and consumer goods ($0.6 billion).
The Feb 2008 to Feb 2009 change in imports of goods reflected decreases in industrial supplies and materials ($30.1 billion); automotive vehicles, parts, and engines ($12.2 billion); capital goods ($8.6 billion); consumer goods ($6.6 billion); foods, feeds, and beverages ($0.5 billion); and other goods ($0.1 billion).
The deficit with China declined to $14.2 billion from $20.6 billion in January, the lowest level since February, FY2006.
The deficit with Japan, the second-largest economy after the US, also narrowed sharply to $2.2 billion, falling to a 25-year low.
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For a good analysis of this drop in the trade deficit and what may be behind it, check out my post at http://petemurphy.wordpress.com/2009/04/09/plunge-in-us-trade-deficit-a-result-of-global-cooperation/
Author, “Five Short Blasts”