US trade gap shrinks to 10-year low

[lindisfarne]

Source: AFP/Raw Story

The US trade deficit narrowed sharply in May to its lowest level in a decade, led by a plunge in imported oil, government data showed Friday.

The deficit fell nearly 10 percent in May to a seasonally adjusted 26.0 billion dollars, the lowest level since July 1999, the Commerce Department said.

Most analyst expected the gap would widen to 30 billion dollars amid the global recession that has battered international trade. The May deficit was 57.1 percent lower than a year ago, while trade volume grew only 0.4 percent.

The Commerce Department lowered the April deficit to 28.8 billion dollars from 29.2 billion dollars.

Read more: http://rawstory.com/news/afp/US_trade_gap_shrinks_to_10_year_low_07102009.html

[Deja Q]

1. How will repukiedookies blame President Obama for this?

They were frothing over Clinton's deficit gap... though not-so-amusingly-silent when Shrubbiekins took over for 8 grueling years... Oh, under Bush the deficit ballooned more than Oprah, yet none of their lot was even remotely bothered.

[tritsofme]

2. This isn't happening for positive reasons.

It is indicative of the massive recession we are facing.

When we start seeing recovery, the gap will widen once again.

[billyoc]

3. This is the one upside to a weak dollar. American goods are more desirable.

Weird shit, economics. :hi:

[Rage for Order]

4. Weak dollar, and...

Suppressed US demand for oil, which is the import that usually skews the trade imbalance heavily against us.

[Zynx]

7. Indeed. In late 2006 and throughout 2007 we were actually correcting the non-oil

trade deficit at a decent rate. This will probably be somewhat of a longer term trend as well.

[tomm2thumbs]

5. oil

[OHdem10]

6. Americans do not have jobs==no money to spend. This is a world

wide Globalization Crisis. No country can afford to buy very much.

Not too much positive about this. The number sounds good.

[Zynx]

8. At the same time, if our consumption were collapsing, but we were increasing our share of imported

goods as a percent of total consumption, that would be a very bad sign. I'm not sure it has ever happened, but the fact that global current account imbalances are correcting is a positive side-effect, even if it is for the reason that we are all getting poorer.

[WriteDown]

9. Classic economics. nt

[DCBob]

10. Interesting side benefit of this crisis. I wonder if there is also a "buy American"..

mentality more prevelent now because of the situation we are in. For example I am looking at buying American for my next vehicle even though I am a long time Hondaphile.