Is the economy recovering? Imports rise by 2.6% of course led by the increasing cost of oil. America’s wealth being shipped out the country either directly to oil countries or through China as they continue to sell cheap goods to American and use the money to buy more oil!
Let’s hope the rise in imports is more about the rebounding ecomomy than the rise in oil prices!
Bloomberg
U.S. Economy: Trade Gap Grows as Oil Prices Jump; Exports Climb
January 12, 2010, 08:15 PM EST
By Courtney Schlisserman
Jan. 12 (Bloomberg) — The trade deficit in the U.S. widened in November more than anticipated as imports climbed faster than exports, pointing to a rebound in global demand that is fueling growth.
The gap expanded 9.7 percent to $36.4 billion, the highest level since January, from a revised $33.2 billion in October, Commerce Department data showed today in Washington. Imports increased 2.6 percent, reflecting a jump in oil prices, while exports rose to the highest level in a year.
Spending by American companies and consumers will continue to push up imports, while a 12 percent drop in the dollar since early March and growing economies overseas mean U.S. sales abroad may also improve. China’s move to cool its economy by raising bank reserve requirements caused stocks to tumble worldwide.
“There’s continued strong export growth ahead,” said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts. “On the import side, it’s logical that if U.S. companies are no longer running down their inventories that they’re going to need to import more.”
read the rest of the story: http://www.businessweek.com/news/2010-01-12/u-s-economy-trade-gap-grows-as-oil-prices-jump-exports-climb.html
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