The article from the census bureau bodes well for the United States' GDP growth. It relates that United States exports are increasing while imports are decreasing.
In July, exports grew 1.8 percent, after falling 1.3 percent in June. Over the month, the trade deficit narrowed considerably, falling 14.1 percent to a monthly pace of $42.8 billion. This drop in net-exports was a major drag on Q2 GDP growth. In contrast, the narrowing of the gap in July bodes well for Q3 GDP growth. The trade gap had expanded greatly in June to a pace of $49.8 billion per month. Imports fell 2.1 percent, following two months of strong growth. From a year prior, exports were up 19.9 percent, while imports were up 22.7 percent.
Hopefully this decrease in the United States trade deficit will continue and this will spur on United States companies to increase our GDP.
While the diminishing trade deficit will always be noted as a positive for the US economy, I don't think it is a honest diagnostic tool of where the economy is heading. It is also important to remember how large the trade deficit is. It won't change things if we have one successful period. We must build on our winnings and continue to strive towards reviving this economy back to the prestigious place it once held.
ReplyDeleteI think it is a really good sign that exports are increasing and imports are decreasing. It goes to show that the U.S. is producing more in the country, keeping the jobs in the U.S. and bringing new ones in, which is what is really needed right now with the number of unemployed so high. While it is a good sign, the U.S. does need to have continuous periods like this in order to actually make a more significant impact. It's a start in the right direction though, just more periods like this is needed.
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