Trade deficit narrows
By SwizStick • Dec 14th, 2006 • Category: QuickNewsMissed this yesterday, but our friends at ShopFloor.org, the Manufacturer’s Blog, have reported that the trade deficit has dropped:
This was the 12th consecutive month in which manufactured goods exports outpaced imports, with the export of advanced technology goods leading the way. While the trade deficit is still large, this is encouraging news, because it means we are selling more US-made goods overseas. Of course, it doesn’t hurt that the dollar is lower these days vis a vis the euro.
Like they said, the ever-weakening dollar helps a lot by making US-made goods a lot cheaper. In fact, I am confident this is one of the major reasons for the rosy export numbers recently. While I was in Thailand I watched the dollar drop from 37, to 36, to 35, and it was hovering close to 34 Thai Baht to the dollar by the time I left (I was there for nearly 3 weeks - it has since stabilized at around 35 Thai Baht to the dollar). I remember just 18 months ago, the last time I was in Thailand, and being upset because the dollar had dropped to 39 Thai Baht to the dollar. 4 years ago it was 42-43 to the dollar.
The weak dollar is making an impact on the trade deficit - with US exports becoming cheaper and imports more expensive.
Stumble it!
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