[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]
|
Status: Not Logged In; Sign In
Business Title: Trade Deficit in U.S. Narrows as Exports Increase Nov. 10 (Bloomberg) -- The trade deficit in the U.S. narrowed more than forecast in September as a drop in the dollar pushed exports to the highest level in two years. The gap shrank 5.3 percent to $44 billion, smaller than the $45 billion median estimate of economists surveyed by Bloomberg News, Commerce Department figures showed today in Washington. Exports increased 0.3 percent on foreign demand for aircraft, generators and foods, and imports fell. A flagging dollar is making American goods cheaper overseas as demand in emerging economies propels international sales for U.S. exporters line General Electric Co. Foreign products, in turn, are becoming more expensive for U.S. buyers, signaling the trade deficit will keep narrowing in coming months and contribute to gross domestic product for the first time in a year. “Exports are probably going to be supported by the weaker dollar,” said Ed Kashmarek, an economist at Wells Fargo Securities LLC in Minneapolis, who projected the gap would drop to $44.1 billion. “The weaker dollar is also going to detract a little bit from imports.” The number of Americans filing initial jobless claims last week fell to the lowest level in four months, reinforcing evidence the U.S. labor market is healing, figures from the Labor Department today also showed. Applications for jobless benefits declined by 24,000 to 435,000 in the week ended Nov. 6, lower than the median forecast in a Bloomberg News survey. Stocks Rebound Stock-index futures climbed after the reports, erasing earlier losses. The contract on the Standard & Poor’s 500 Index expiring in December rose 0.1 percent to 1,212.2 at 8:55 a.m. in New York. Trade deficit estimates of the 75 economists surveyed ranged from $39.1 billion to $49 billion. The September balance adjusted for inflation, which is the figure used to calculate GDP, decreased to $49.9 billion from $51.5 billion in August. The gap compares with the average $48 billion a month in the second quarter. Trade subtracted 2 percentage points from growth in the third quarter, according to the Commerce Department’s initial GDP estimate. Foreign purchases detract from growth because they signal demand is being filled by producers overseas instead of American firms. Growing Exports U.S. exports increased to $154.1 billion, the most since August 2008. Sales of American-made civilian aircraft, which are often volatile, climbed by $698 million. Boeing Co., the largest U.S. civilian aircraft maker, shipped 25 planes overseas in September, up from 17 in August, according to company data. The outlook for U.S. exports is holding up as emerging economies from China to India and Brazil modernize their infrastructure and more affluent households are able to afford goods and services from abroad. General Electric Chief Executive Officer Jeffrey Immelt this week appointed Vice Chairman John Rice to accelerate a push to bolster exports and expand partnerships in countries upgrading transportation and utility grids to support economic growth, such as China and India. “The growth in the next decade or decades that’s going to take place will be quite robust in places like China and India,” Immelt said Nov. 9 in Beijing. Emerging Markets GE got about $33 billion of its $157 billion in revenue last year from emerging markets, with about $6 billion from China. Sales in China should rise by at least 10 percent this year, Immelt reiterated in July. September’s gain in exports was paced by growing demand from Hong Kong and countries in the European Union, including the Netherlands, Italy and Ireland. A drop in the value of the dollar, by making U.S. goods cheaper to foreign buyers, may keep boosting exports. After reaching a one-year high on June 7, the dollar weakened 7.5 percent through the end of October against a trade-weighted basket of currencies. President Barack Obama, whose Democratic Party lost control of the House of Representatives after last week’s elections, is in Asia with the aim of promoting stronger trade ties with countries such as India, Indonesia and South Korea. Imports dropped 1 percent to $198.1 billion in September, reflecting less demand for foreign-made autos and consumer goods like pharmaceuticals and clothing. American demand for capital goods made overseas climbed to a record, indicating business investment in computers and software continues to improve. A surge in demand for foreign computers caused a record $9 billion deficit in advanced technological products in September. An $8.6 billion gap with China accounted for almost all the shortfall in technology trade. The overall deficit with China decreased to $27.8 billion from $28 billion in August, as U.S. imports of goods other than technology equipment dropped.
Post Comment Private Reply Ignore Thread |
|
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]
|