| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : US Economy Last Updated: Apr 12, 2011 - 3:24 PM


US trade deficit fell in February to $45.8bn
By Finfacts Team
Apr 12, 2011 - 1:53 PM

Email this article
 Printer friendly page

The US monthly international trade deficit decreased in February 2011, according to the US Bureau of Economic Analysis and the US Census Bureau. The deficit decreased from $47.0bn (revised) in January to $45.8bn in February, as imports fell more than exports. The previously published January deficit was $46.3bn.

Exports: Exports of goods and services dropped $2.4bn in February to $165.1bn, reflecting a dip in goods exports. Services exports increased slightly.
  • The decline in goods exports was mostly accounted for by decreases in automotive vehicles, parts, and engines; industrial supplies and materials; and other goods.
  • The increase in services exports was more than accounted for by an increase in other private services (which includes items such as business, professional, and technical services, insurance services, and financial services). A decrease inother transportation (which includes freight and port services) was partly offsetting.

Imports: Imports of goods and services decreased $3.6bn in February to $210.9bn, mostly reflecting a decrease in goods imports. Services imports also decreased.

  • The drop in goods imports was more than accounted for by decreases in automotive vehicles, parts, and engines; capital goods; and industrial supplies and materials. An increase in consumer goods was partly offsetting.
  • The dip in services imports was more than accounted for by falls in other transportation and travel. An increase in other private services was partly offsetting.

Gods by geographic area (not seasonally adjusted)

  • The goods deficit with China declined from $23.3bn in January to $18.8bn in February. Exports increased $0.4bn to $8.4bn, while imports decreased $4.1bn to $27.3bn.
  • The goods deficit with the European Union increased from $5.6bn in January to $6.9bn in February. Exports decreased $0.3bn to $20.0bn, while imports increased $1.1bn to $26.9bn.
  • The goods deficit with Canada decreased from $3.8bn in January to $2.9bn in February. Exports were virtually unchanged at $20.6bn, while imports decreased $0.9bn to $23.5bn.


Prof. Peter Morici of the University of Maryland commented before the release of today's data:
"Tuesday, analysts expect the Commerce Department to report the deficit on international trade in goods and services was $44.0bn in February, up from $27bn in mid-2009, when the economic recovery began.

This trade deficit subtracts from demand for US-made goods and services, just as a large federal budget deficit adds to it. Consequently, a rising deficit slows economic recovery and jobs creation and limits how much Congress and the President may cut the deficit without sinking the economic recovery.

Rising oil prices and imports from China are driving the trade deficit up, and these are major barriers to creating enough jobs to pull unemployment to acceptable levels over the next several years. Were the Obama Administration and Republican leadership in Congress to address the trade deficit, economic growth, jobs creation and tax revenues would increase dramatically, and the federal deficit could be cut to manageable levels without fear of killing jobs creation.

Jobs Creation

The economy added 216,000 jobs March; however, 360,000 jobs must be added per month to bring unemployment down to 6% over the next 36 months. With federal and state governments trimming civil servants, private sector jobs growth must exceed 360,000 per month to accomplish this goal.

Americans have returned to the malls and new car showrooms but too many dollars go abroad to purchase Middle East oil and Chinese consumer goods that do not return to buy US exports. This leaves too many Americans jobless and wages stagnant, and state and municipal governments with chronic budget woes.

Now, gasoline prices rising to $4.00 a gallon threaten to further reduce spending on homes and discretionary items made in the United States—leaving many US businesses again scrambling for customers and pressured to layoff workers.

Simply, policies regarding energy and trade with China are not creating conditions for 5% GDP growth that is needed and easily could be achieved to bring unemployment down to acceptable levels.

In March, the private sector has added 230,000 jobs per month, but many were in government subsidized health care and social services, and temporary business services. Netting those out, core private sector jobs have increased only 157,000 in March—that comes to 50 permanent, non-government subsidized jobs per county for more than 5000 job seekers per county.

Early in a recovery, temporary jobs appear first, but 21 months into the expansion, permanent, non-government subsidized jobs creation should be much stronger.

Economic Growth

Since the recovery began in mid 2009, GDP growth has averaged 2.9%, disappointing Administration economists who have consistently assumed 4% growth in budget projections and forecasts for the job creating effects of stimulus spending.

Consumer spending, business technology and auto sales have added strongly to demand and growth, and exports have done quite well. However, soaring oil prices and the continued push of subsidized Chinese manufactures in US markets have overwhelmed these positive trends. Now gasoline prices rising to $4.00 a gallon could significantly slow or kill the recovery and recent modest resurgence in jobs creation.

Administration imposed regulatory limits on conventional oil and gas development are premised on false assumptions about the immediate potential of electric cars and alternative energy sources, such as solar panels and windmills. In combination, Administration energy policies are pushing up the cost of driving and making the United States even more dependent on imported oil and indebted to China and other overseas creditors to pay for it.

To keep Chinese products artificially inexpensive on US store shelves, Beijing undervalues the yuan by 40%. It accomplishes this by printing yuan and selling those for dollars and other currencies in foreign exchange markets.

Presidents Bush and Obama have sought to alter Chinese policies through negotiations, but Beijing offers only token gestures and cultivates political support among US multinationals producing in China and large banks seeking additional business in China.

The United States should impose a tax on dollar-yuan conversions in an amount equal to China’s currency market intervention divided by its exports—about 35%. That would neutralize China’s currency subsidies that steal US factories and jobs. It is not protectionism; rather, in the face of virulent Chinese currency manipulation and mercantilism, it’s self defense."

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

US Economy
Latest Headlines
US jobs rose by 215,000 in July; Unemployment rate stable at 5.3%
US economy grew at weak pace in Q2 2015 - Worst expansion since 1945
Decoupling of per capita GDP, productivity, private employment, and median family income in America
US economy stumbles again in 2015
Income gap highest in 30 years; No inequality rise in best-paying US firms
Fed minutes raise doubts about fragility of US recovery
Senate Democrats block trade deal authority for Obama
Five firms held 25% of top US non-financial companies cash pile in 2014
US added 223,000 jobs in April; Broad jobless rate at 10.8%
Investment struggles as dividends/ share buybacks at top US firms to exceed $1tn in 2015
US economic growth plunged in Q1 2015
Why the Fed may (almost) never raise interest rates
US jobless rate falls to 5.5%; Broad rate at 11%; Participation rate at 1978 level
US added 257,000 jobs in January; Broad jobless rate at 11.3%
US economy will soon see best years in a decade
US annualised GDP slowed sharply in final quarter 2014
US budget deficit to fall to 2.6% of GDP in 2015
US added 252,000 jobs in December; Jobless rate falls to 5.6%
US adds 321,000 jobs in November; Private sector adds 10.9m jobs in 57 months of growth
US manufacturing slowed in November
US retail spending over Thanksgiving weekend fell 11%
US consumer spending weak in October; Business investment fell again
US third-quarter GDP revised up to 3.9% annualised rate
After destroying banking secrecy US helps Swiss exporters
US oil imports from OPEC cartel at 30-year low
Tax-inverted "Irish" firm Actavis agrees to buy US Botox maker Allergan
US nonfarm payroll employment rose 214,000 in October' Jobless @ 6-year low
Swiss bankers await fallout of US tax evasion acquittal
Two PMI reports give contrasting trends on US manufacturing
US GDP increased at annualised 3.5% in third quarter of 2014
US city home price growth slowed again in August; Consumer confidence rebounded in September
US new orders for manufactured durable goods fell again in September
Loans to buy US shares at record highs
Global markets slide; US industrial production best in 3 years & jobless claims in 14-year low
US federal budget deficit dips to 2.9% of GDP in fiscal year 2014
US added 248,000 jobs in September; Jobless rate falls to 5.9%
US set to become world’s leading liquid petroleum producer again
Obama issues new rules to combat tax inversions
US Securities and Exchange Commission to pay $30m award to foreign whistleblower
Typical American household income in 2013 was below the 1989 level