Bloomberg details:
The trade deficit in the U.S. widened in September by the most in a decade, reflecting rising demand for imported oil and automobiles as the economy rebounded from the worst recession since the 1930s.
The gap grew a larger-than-anticipated 18 percent to $36.5 billion, the highest level since January, from a revised $30.8 billion in August, the Commerce Department said today in Washington. Imports surged by the most in 16 years, swamping a gain in exports.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhiM4zeURIWv4JYxP8mx5RzP0CUbmm5k6CRFTfMZztUQdy1ZZPGbnZOckZudDEvmGH1IM6pms6i92NqtAoFEmUkImZ1sBTGJyd2hne469dgyHOa97oLjH01cYgV5Uo6fdUzJHDZerQAhA/s400/tradebal.png)
As detailed above, a large component of that net trade deficit was autos. This isn't a huge surprise. When we took a look at September Auto sales, foreign cars performed much better on a relative basis.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEivjwnkvi3Ag6tjoMhSKAo_5O5ox1LdQjAlbmNxeOHPYr_djQ0EKkeQRsiew9-gFDkK2Cqbw9Af4hhQydPVCC5uZeT0Kl9HZao5Qw-4f32YKw07zZDXeRn0TU81uIE39Csd9v2lRqKShg/s400/auto99.png)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEivjwnkvi3Ag6tjoMhSKAo_5O5ox1LdQjAlbmNxeOHPYr_djQ0EKkeQRsiew9-gFDkK2Cqbw9Af4hhQydPVCC5uZeT0Kl9HZao5Qw-4f32YKw07zZDXeRn0TU81uIE39Csd9v2lRqKShg/s400/auto99.png)
So glass half full... The global economy is rebounding. Glass half empty... We (the global economy) are back to relying too much of an indebted US consumer (see Eurozone GDP).
Source: Census
> The global economy is rebounding.
ReplyDeleteGlobal spending (by governments) is rebounding.
Never confuse government spending with the economy.
Another way to think about it:
ReplyDeleteIf (government funded) jobs was a net gain (not net drain) on the economy, we'd all
just work for the government and the problem would be solved already.
Unfortunately, it is a net drain....we're
just deferring the bill past the next
election, like always.