Friday, December 10, 2010

Trade Deficit Narrows by 13.2%; Exports Post Strong Growth, Imports Decline

In October, the trade deficit narrowed considerably, falling 13.2% to a monthly pace of $38.7 billion. This was the second signifigant drop in a row. The trade deficit expanded considerably following the Greek debt crisis last spring, as exports were hurt due to currency revaluations and depressed demand in Europe. Net-exports were a significant drag on GDP growth in Q2 and to a lesser extent in Q3. However, exports have now grown solidly the past two months and this bodes well for adding to growth in Q4.

Over the month, exports grew 3.2%, following growth of 0.5% in September. At the same time, imports fell 0.5%, which was the second similarly sized decline in a row. From a year prior, exports were up 15.9%, while imports were up 16.1%.

Mo. % ChangeOctSepAugJulJunMay
Trade Deficit (billions)$38.7$44.6$46.9$42.9$50.1$42.2
    Mo. % Change-13.2-4.99.3-14.418.73.4

No comments:

Post a Comment

Please read our comment policy before making a comment.