The US — Continuing to Export Its Way Out of Recession

The latest June trade numbers support my earlier thesis, and anecdotes, presented on SpendMatters that the only thing keeping the US out of a nasty recession at the moment are exports. This Reuters dispatch commenting on the most recent economic numbers continues to support this premise. Consider in June how "the U.S. trade deficit shrank unexpectedly in June as the weak U.S. dollar helped push exports higher and overpowered record high prices for imported oil … exports rose by 4.0 percent compared to a 1.8 percent gain for imports." What countries are sourcing more from the US? According to Carlos Gutierrez, US Commerce Secretary, the growth is "very broad based … [it’s] coming from Brazil, it's coming from Russia, it's coming from India, it's coming from the Middle East." And if you're wondering what these countries are sourcing, it falls into the all-of-the-above category thanks to a weak dollar. "Exports set records in several categories, including overall goods, overall services, petroleum, food, feeds and beverages, industrial supplies and materials, capital goods and consumer goods," Reuters notes. That list is not bad, since the US has only been considered a low-cost country for the past few quarters

- Jason Busch

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