Trade Deficits, Exports, Imports Discussed : What's Happening

Some good news, accept the dollar jump will take some of the bloom off the rose for imports and exports in the future. Still, even with our economy being under fire from the progressive socialists pumping up the debt to support for an unproductive agenda of spending, the American economy is still better then most foreign economic situations making America a magnet for investment.

How long can we dupe these people in believing our economy won't be a huge mistake for investors is undetermined. Can we hold our breath for two more years hoping for a good Conservative to win the White House in 2016 that will fix our economy is also undetermined.

Electing another democrat will ensure our demise.

U.S. Trade Deficit Narrows in February
Source: Kate Davidson, Eric Morath, "U.S. Trade Gap Narrows in February," Wall Street Journal, April 2, 2015.

April 3, 2015

The U.S. trade gap in February shrank to its lowest level since October 2009, reflecting a sharper drop in imports than exports.

• The trade deficit narrowed to a seasonally adjusted $35.44 billion in February. January's deficit was revised to $42.68 billion from an initially reported $41.75 billion.
• Exports decreased 1.6 percent from January to $186.25 billion, while imports fell 4.4 percent to $221.69 billion. That was the largest drop in imports since the recession ended in 2009.
• Last month, the trade deficit for petroleum products fell to $8.1 billion, its lowest level since July 2002.
• Non-petroleum imports were $162.4 billion on a seasonally adjusted basis, down from January's $169.7 billion.
• Exports of goods fell in February to $125.6 billion. Much of the decline was in industrial supplies and cars.

Tightening of the trade deficit likely reflects a variety of factors, including the strengthening U.S. dollar, the sharp drop in oil prices, disruptions related to a labor dispute at West Coast ports and the relative strength of the U.S. economy.

Stimulus programs in the European Union and Japan were helping drive up the dollar, which could weigh on U.S. growth by lowering American exports. But to the extent these policies succeed in improving the outlook in trade partners, faster growth abroad is a plus for the United States.