trade deficit shrinks YAY!

[maladroit]

Trade Deficit in U.S. Probably Narrowed on Falling Oil Prices

By Timothy R. Homan

Nov. 13 (Bloomberg) -- The U.S. trade deficit probably narrowed in September as retreating oil prices reduced the value of imports, economists said before a report today.

The gap shrank to $57 billion, the smallest in six months, from $59.1 billion in August, according to the median forecast in a Bloomberg News survey. A separate report may show the number of workers seeking jobless benefits continues to swell.

Demand for foreign crude oil, automobiles and televisions may keep falling as the global credit crunch causes American consumers and businesses to retrench. A narrowing trade gap is likely to remain one of the few bright spots, even as shrinking economies in Europe and Japan also cause U.S. exports to slump.

``The trade figures are among the few that are improving, as the U.S. recession drags down imports to a greater degree than the global downturn depresses U.S. exports,'' said Michael Gregory, a senior economist at BMO Capital Markets in Toronto.

The Commerce Department's report on trade is due at 8:30 a.m. in Washington. Estimates of the 71 economists surveyed ranged from deficits of $52.8 billion to $59 billion.

Also at 8:30 a.m., a report from the Labor Department may show 480,000 people filed initial applications for unemployment insurance last week, little changed from 481,000 a week earlier, according to the survey median. On average, 321,000 workers per week submitted claims last year.

The drop in fuel prices is probably the main reason the trade gap decreased in September, economists said. The cost of imported petroleum fell 9 percent and natural gas prices slumped 16 percent during the month, according to Labor Department figures.

maladroit Reviewed by maladroit on 11-13-2008. trade deficit shrinks YAY! Trade Deficit in U.S. Probably Narrowed on Falling Oil Prices By Timothy R. Homan Nov. 13 (Bloomberg) -- The U.S. trade deficit probably narrowed in September as retreating oil prices reduced the value of imports, economists said before a report today. The gap shrank to $57 billion, the smallest in six months, from $59.1 billion in August, according to the median forecast in a Bloomberg News survey. A separate report may show the number of workers seeking jobless benefits continues to Rating: 5

[maladroit]

"A narrowing trade gap is likely to remain one of the few bright spots"

- bloomberg neglected to report that the sept 2008 trade deficit is larger than the sept 2007 deficit, the jan-sept 2008 trade deficit is larger than the jan-sept 2007 deficit, and the september trade deficit with china is the highest on record (almost a billion dollars per day for the month of september)