The U.S. Census Bureau reported Wednesday that the September goods and services trade deficit was an enormous, humongous $40.8 billion. This is down 15 percent from August’s enormous, humongous $40.8 (revised) billion trade deficit, (which was up 15.6 percent from July’s enormous, humongous trade deficit.)
Lower crude oil prices helped cut the amount spent on imports with petroleum imports down 8.3 percent. Sales of commercial airplanes and jet engines helped boost exports.
AP reports, “Economists are looking for the deficit to widen in the coming months as a weak global economy and strong dollar puts pressure on exports. … The U.S. deficit with China is running 8.4 percent higher than a year ago, on track to set another in a string of annual records.”
Also, the full effect of China’s currency devaluation and the stronger U.S. dollar is yet to hit.
The monthly U.S. goods deficit with China was an enormous, humongous $30.7 billion. In a single month.
The U.S. goods deficit with Japan was $5.5 billion which doesn’t seem all that enormous and humongous next to our trade deficit with China, but is still enormous and humongous.
The U.S. goods deficit with South Korea was $1.8 billion which is really enormous and humongous when you consider that the Korean-U.S. free trade deal was sold as a way to increase our exports and create jobs.
The trade deficit measures the amount of jobs, factories, manufacturing ecosystems and general wealth drained from our economy by our trade policies.