I likely got ahead of myself with the whole export nation thing, but if the dollar does weaken like many anticipate, then along with the reduced consumption by the U.S. consumer, this trade deficit may flip to positive territory sooner than later. Either way, this will definitely be a plus for second quarter GDP. Bloomberg with the details:
The U.S. trade deficit unexpectedly narrowed in May to the lowest level in almost a decade as exports jumped while imports of crude oil and auto parts declined.
The gap between imports and exports decreased 9.8 percent to $26 billion, the smallest deficit since November 1999, from a revised $28.8 billion in April that was lower than previously estimated, the Commerce Department said today in Washington. Imports fell while exports rose the most since July 2008.
A shrinking deficit signals trade will contribute more to U.S. growth as exports to emerging economies such as Brazil increase. Meanwhile, U.S. demand for imported auto parts was held down in May by production cutbacks and factory shutdowns by Detroit-based General Motors Corp. and Chrysler LLC, based in Auburn Hills, Michigan, two of the nation’s three largest automakers.