US trade deficit shrinks to 59.1 billion dollars

Breitbart ^ | Mar 09 2007

[freedrudge]

The US trade deficit narrowed 3.8 percent in January to 59.1 billion dollars thanks to record-breaking export growth, the Commerce Department said Friday. It was a bigger drop than expected on Wall Street, where analysts saw a deficit of 60.0 billion dollars, and marked the steepest change in the trade figure since October.

An improving trade picture could be good for first-quarter US economic growth, as a higher deficit subtracts from gross domestic product.

Total imports fell 0.5 percent to 185.8 billion dollars last month while exports jumped 1.1 percent to a new record of 126.7 billion.

US exports of capital goods grew by 1.0 billion dollars from December to January, consumer goods increased 500 million and foods, feeds and beverages went up 300 million.

But America's politically sensitive deficit with China surged 12 percent to 21.3 billion dollars, with US consumers as hungry as ever for cheap Chinese products.

The US deficit with the European Union slumped 28 percent to 6.5 billion dollars, while the shortfall with Canada grew 23 percent to 6.9 billion.

Overall, the United States imported fewer vehicles, parts and engines (down 1.5 billion dollars) and consumer goods (down by 1.4 billion) in January from December.

Exports of vehicles and parts also fell, by 700 million dollars, reflecting a deep restructuring underway in the biggest US automakers -- General Motors and Ford.

[george76]

Bush tax rate cuts are working...