trade deficit

Trade Deficit for September 2009 - increased 18.2% in one month

The BEA has released September's trade deficit numbers (pdf).

September exports of $132.0 billion and imports of $168.4 billion resulted in a goods and services deficit of $36.5 billion, up from $30.8 billion in August, revised.

September exports were $3.7 billion more than August exports of $128.3 billion. September imports were $9.3 billion more than August imports of $159.1 billion.

Sept. 2009 trade

The deficit, which detracts from GDP, increased 5.7 billion in one month, or 18.2%. That's the largest jump in a decade.

The balance of services remained stable, both imports and exports grew by $0.2 billion.

trade balance Sept. 2009

Here Comes China with Dr. Doom Right Behind

While Dr. Doom (Roubini) warns of a double dip recession, an interesting New York Times article also appears, Asia’s Recovery Highlights China’s Ascendance.

In past global slowdowns, the United States invariably led the way out, followed by Europe and the rest of the world. But for the first time, the catalyst is coming from China and the rest of Asia, where resurgent economies are helping the still-shaky West recover from the deepest recession since World War II.

While Roubini warns on oil price increases breaking any potential recovery, we note China's robust growth is causing oil prices to rise.

Anyone recall China's Quest for Oil quoting deal after loan after acquisition?

Trade Exports and Imports Implode

January's trade statistics are out and imports dropped 22.8% while exports dropped 16.4%. So, a ring of good news, our trade deficit dropped. But the bad news: U.S. exports have dropped 44% on a yearly scale. From the BEA:

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total January exports of $124.9 billion and imports of $160.9 billion resulted in a goods and services deficit of $36.0 billion, down from $39.9 billion in December, revised. January exports were $7.6 billion less than December exports of $132.5 billion. January imports were $11.5 billion less than December imports of $172.4 billion.

Europe - biggest trade deficit ever

Bloomberg is reporting

Europe recorded the biggest trade deficit in 2008 since the euro’s introduction 10 years ago as higher oil prices boosted energy costs and the global financial crisis curtailed exports.

The region’s trade deficit of 32.1 billion euros ($40.5 billion) compared with a surplus of 15.8 billion euros in 2007, the European Union’s statistics office in Luxembourg said today.

The spreading of the global recession is curbing demand for European products, adding to pressure on the economy, which shrank the most in 15 years in the fourth quarter. Volkswagen AG, Europe’s largest carmaker, said deliveries fell about 20 percent last month and that sales in the export markets of Brazil, Russia, India and China have been “particularly hit” by the credit freeze.

We're in a Recession - Unemployment, GDP

Well, finally someone admits something we all know, we're in a recession:

We're in a recession,'' Allen Sinai, chief economist at Decision Economics Inc. in New York, said in a Bloomberg Television interview. ``It's going to widen, it's going to deepen.

GDP - 1.9% vs. 2.3% expected.

Trade deficit narrowed, lowest in 7 years.

American Economic Alert goes into depth on the unemployment rate statistics:

six months, the economy lost 438,000 jobs. Manufacturing and construction shed 235,000 and 261,000 jobs, respectively, and in recent months, layoffs spread to finance and retail sales. If the economy is to pick up in the second half, the Friday jobs report will have to confound forecasters, who are generally pessimistic

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