|
US Trade Deficit Narros Aug 2007
|
Can't Post
|
|
In the some good news for a change. The US trade deficit narrowed more than expected in August as export levels rose to a monthly high while imports fell. It fell 2.4% to $57.6bn (£28.3bn), the lowest monthly shortfall since January.
The deficit with China narrowed by 5.3% to $22.5bn as the US sold more aircraft and soybeans while China sold fewer computers.
Chinese toy exports to the US actually increased (because Americans rather cheap toys than safe ones).
How does this impact the dollar? Well theoretically it's good news to appreciate the currency. But the impact was marginal. The value of US exports rose to a record $138.3bn in August thanks, in part, to the fall in the value of the US dollar against other major currencies which made exports more competitive.
In contrast, the value of imports fell 0.4% to $195.9bn as US firms reduced shipments of foreign-made cars and furniture.
The deficit for the first eight months of 2007 totalled $708bn, down 6.7% on the corresponding period last year.
Join the Economics Community!
|
Barry
Mr. Do It All
Oct 11, 2007, 1:36 PM
Post #1 of 1
(463 views)
|
