Shrinking US trade gap seen as positive for economy...(Now for some good news)

[Peacetrain]

http://news.yahoo.com/s/afp/20090710/pl_afp/useconomytrade_20090710154118

WASHINGTON (AFP) – The US trade deficit unexpectedly fell in May as exports picked up for the first time in two months, government data showed Friday, in a report seen as positive for an ailing US economy.

The deficit fell nearly 10 percent in May to a seasonally adjusted 26.0 billion dollars, the lowest level since November 1999, the Commerce Department said.

Most analysts expected the gap would widen to 30 billion dollars amid the global recession that has battered international trade. The May deficit was 57.1 percent lower than a year ago, while trade volume grew only 0.4 percent.

"Amidst all the downsides of the recession there is actually one positive, the trade deficit is narrowing," said Joel Naroff of Naroff Economic Advisors.

[Democrats_win]

1. It's like telling someone who is bleeding to death that they're losing weight.

Yeah, we've wanted to lower the trade deficit but does it matter that so many need to lose their jobs and their houses to achieve it? We're still living in the bush economy so we shouldn't be surprised that any good news is accompanied by tons and tons of bad.

[invictus]

19. Exactly!

[DJ13]

2. Thats not really a positive

That just signifies that spending is so low the importers dont need to restock.

[Peacetrain]

3. Exports of goods rose 2.0 billion dollars to 82.1 billion

as increases in exports of industrial supplies and materials; foods, feeds, and beverages; consumer goods; and capital goods more than offset a decline in automotive vehicles, parts, and engines.

"The improvement in exports combined with stability in non-oil imports is a welcome sign that the headlong decline in world trade volumes has come to an end," said Nigel Gault, chief US economist at IHS Global Insight.

[DJ13]

4. That signifies the rest of the world isnt as bad off as we are

This dance could go on, but whats the point?

[Peacetrain]

5. "The US trade numbers will help slow the rate of contraction in the US,"

said Jennifer Lee of BMO Capital Markets.

IHS Global Insight's Gault said that "trade will make a big positive contribution to gross domestic product growth in the second quarter, probably adding around 1.5 percentage point to the growth rate."

[DJ13]

6. I dont know about you, but after the economic collapse I dont listen to

.....the so called market "experts" anymore.

They couldnt see the derivatives crisis coming, they couldnt see the housing collapse as it happened, they couldnt see the stock market decline facing them, and they thought oil prices would only continue to escalate to $200 per barrel.

Listening to these so called "experts" trying to sell the "green shoots" BS isnt a good idea.

[Peacetrain]

7. Hard numbers... gives me hope

[brentspeak]

17. How many of those "exports" are actual exports?

National Semiconductor, one of the companies mentioned in the article, has a manufacturing facility based in China. National Semiconductor products sold in China are termed "exports" simply because the company is headquartered in the U.S. Therefore, today's export numbers are bogus.

[Peacetrain]

20. Exports rose 1.6 percent, the biggest increase since July 2008,

to $123.3 billion, as sales of petroleum products, chemicals and industrial machinery increased. Exports this year have gotten a boost from aircraft manufacturers. Chicago-based Boeing Co., the world’s second biggest commercial-plane maker, said it got 20 orders in May, up from 17 in April.

Edit to add:

Hard numbers.. 20 planes ordered.. its things like this that get people back to work..along with a developing green economy, that we can then export..

Nothing magical here.. hard long slog uphill.

[Capt. America]

8. The reason it went down is because Americans have less money to spend, and since

most of the manufactured goods we buy are made overseas....

[Peacetrain]

9. No.. we had an actual increase in products people overseas are buying from us.

[Capt. America]

10. If you are interested in the trade imbalance issue and how it affects America you should

read "America, Come Home" by William Greidner (sp?). He really sums up how it is destroying our nation.

[Peacetrain]

12. Exports rose 2 billion dollars Capt Amer...that is a a hard number

that is not green shoots, or wishful thinking, or something on the horizon.. It is money traded for our goods..

[OHdem10]

11. I never ceased to be amazed at how stupid some writers must beieve

us to be.

Common sense tells us people around the world are not buying.
They cannot buy if they have become employed and those who have
jobs, are hanging onto any discretionary funds they may have.

This is a Globalization crisis . Countries around the world are
seriously affected.

[Peacetrain]

13. Well somebody bought 2 billion dollars of our goods.. I don't think it was the tooth fairy

Maybe that means the worlds economy is starting to come out of crisis.

[depakid]

14. Chinese stimulus spending is a big part of it

China, the second-largest U.S. trading partner after Canada, will grow 7.5 percent this year and, together with Brazil and other emerging economies, help bring an end to the global slump, the IMF said.

China will “actually be one of the motors of the world economy, replacing the U.S. consumer,” billionaire investor George Soros said this week in an interview with Bloomberg Radio.

Santa Clara, California-based National Semiconductor Corp., whose memory chips supply the top five mobile-phone manufacturers, said June 11 that stimulus spending in China has helped boost its sales.

“We’re benefiting from the buildup in China but we’re not counting on it to go on forever,” Chief Executive Officer Brian Halla said in a telephone interview.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZ8aww_NkB7k

[Peacetrain]

15. Well in that same paragraph Halla says

"“Things have stabilized. I don’t think anyone in this industry is positive enough to say that we’ve recovered.” "

In that same section:

MF Outlook

World trade this year may shrink 12 percent before growing 1 percent next year, the International Monetary Fund said this week in its latest global growth outlook. The world economy will shrink 1.4 percent this year and then recover next year with a 2.5 percent expansion, according to the forecast.

China, the second-largest U.S. trading partner after Canada, will grow 7.5 percent this year and, together with Brazil and other emerging economies, help bring an end to the global slump, the IMF said.

China will “actually be one of the motors of the world economy, replacing the U.S. consumer,” billionaire investor George Soros said this week in an interview with Bloomberg Radio.


We want to grow a hard economy, not just one based on service and consumption

[DrToast]

16. Thanks for the post

The negativity on this board is just ridiculous. No matter how much some people here wish it wasn't, this is very good news.

As the US consumer delevers over the next decade, we're lucky that there's enough economic demand across the globe to fill up some of the gap left by reduced consumer spending.

[Peacetrain]

21. Yep, I have never seen so much angst over

a positive sign.. :shrug:

[OHdem10]

18. There must be a trade deal which Obama plans to sign waiting

around the corner.

[jazzjunkysue]

22. I read this and was hoping it was good news. I'm oblivious to economics, so,

I wasn't sure.
This is the correction we need.