American trade gap narrowest since 2002
Written on March 14, 2009
WASHINGTON–The U.S. trade deficit narrowed 9.7 per cent in January to its smallest since October 2002, as both imports and exports tumbled for the sixth consecutive month in the face of shrinking global demand, a government report showed yesterday.
The monthly trade gap totalled $36 billion (U.S.), below a Wall Street consensus estimate of $38 billion. The deficit has now narrowed for a record six consecutive months. The longest previous run was April through August 2007.
U.S. exports of goods and services fell 5.7 per cent from December to the lowest since September 2006 and imports tumbled 6.7 per cent to the lowest since March 2005.
"U.S. consumers are pulling back and that’s resulting in fewer imports while exports are falling," said Mark Zandi, chief economist at Moody’s Economy payday loans for bad credit.com in West Chester, Penn. "It reflects how bad economic conditions are everywhere."
Total world trade is expected to fall this year for the first time since 1982 as businesses and consumers cut back on spending in response to a weakening global economy and an international financial crisis.
On a year-to-year basis, U.S. exports were down 16.4 per cent in January, while imports were 22.8 per cent lower, the Commerce Department report showed. The monthly trade deficit has narrowed 39.1 per cent over the same period.
U.S. imports and exports of autos and auto parts were the lowest since July 1998.
Reuters News Agency
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