March Trade Deficit Lower!
Here's the headline from the AP as reported by Forbes: March trade deficit drops by bigger-than-expected amount. Doesn't that make you think that maybe the lower dollar is finally improving our trade deficit?
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The U.S. trade deficit narrowed sharply in March as demand for imports fell by the largest amount since the last recession was ending.What's the real truth?The Commerce Department reported Friday that the deficit totaled $58.2 billion, down 5.6 percent from February, a larger improvement than had been expected.
The smaller deficit reflected spreading weakness in the U.S. economy, which cut demand for imports by 2.9 percent, the largest one-month decline since December 2001, one month after the last recession ended.
March 2006 -62,178
March 2007 -63,035
March 2008 -58,200 vs last year down 7.6%.
For three months Jan. through March 2007 -178,620
For three months Jan. through March 2008 -179,480
One month doesn't change the pattern. The USD has been falling since 2002. It's going to take a much bigger USD fall to really cut into the trade deficit?
Posted by movermike on
Friday May 9, 2008 at 12:07pm
