High Trade Deficits? US Becomes An Exporter, Almost

The United States has a monthly release regarding its international trade.  The ‘trade balance’ is actually now always a ‘trade deficit.’  Sometimes a large number is good and that is exactly what we are seeing this morning from the Commerce Department.  The October trade deficit was -$38.71 billion, down from a revised deficit of -$44.6 billion in September and down from the Dow Jones estimate of -$44 billion.

The big gap was China, where exports from the U.S. rose and imports fell.  Exports to China rose to $25.52 billion and imports fell slightly to $34.82 billion.  The deficits did actually increase with Canada and the Euro-area.

Exports from the U.S. rose more than 3% to $158.72 billion versus September’s $153.78 billion, a more than two-year high.  Services exported were a record high of $46.42 billion.  Total imports were marginally lower at $197.44 billion versus $198.37 billion in September.

Total oil and energy imports showed a slight decrease from September and some of the gains in our exports came from food-related products.

It will probably be a cold day in hell that the United States is ever a net exporter again.  We have just shipped too many of our jobs and manufacturing elsewhere.  Still, it is good when you see less-bad numbers of this sort.  It means we are not giving our country away as fast.  The next step is to get the United States and every other trading partner from devaluing their currencies so fast.

JON C. OGG