US trade gap narrows as imports fall amid China conflict

US trade deficit falls in October to lowest since May 2018: report

US trade deficit falls in October to lowest since May 2018: report

"Shrinking the trade deficit by cutting imports even faster than you cut exports is obviously not a sustainable long-term path to drive growth for any economy", said Tim Quinlan, a senior economist at Wells Fargo Securities in Charlotte, North Carolina.

The US trade deficit in October unexpectedly fell to its lowest level in more than a year as Americans imported billions less in autos and consumer goods like toys and mobile phones, according to government data out Thursday. Modest falls were seen in all categories except capital goods.

USA exports of agriculture goods to China rose to $1.2 billion last month, the second highest level of exports since before the tariff fight began previous year.

Goods imports dropped as well, falling 2.1 percent, the same magnitude as September.

Economists said Thursday however that imports were likely to rise in the coming months as a hit from September's tariffs on Chinese merchandise recedes and shoppers resume buying.

Imports from China shrank in October after the USA raised tariffs. Cellphone imports dropped 4.2%, while imports of toys fell 10.1% and apparel decreased 9.2%. Congress has yet to ratify the revamped version he negotiated previous year with Mexico and Canada. -China tariff fight ignited in May of 2018. Weaker economic performance around the world has also led to softer demand for USA exports. Exports in October edged down to US$207.1 billion as foreign buyers took in fewer US-made aircraft engines and industrial supplies.

The goods trade gap with the European Union jumped 20% to $16.4 billion, with imports surging to a record high. "Service exports comprise about a third of overall exports".

Hillary Clinton Continues to Blame Everyone But Herself for 2016 Loss
Clinton said she did not even consider writing a concession speech because she was so sure she would win. During an interview on Howard Stern's radio show , Clinton recalled the "terrible night" in 2016.

The narrower trade gap will make a positive contribution to fourth-quarter gross domestic product. The U.S. economy is capable of producing far more than the U.S. consumes.

"Paradoxically, although the net figure is likely to boost [fourth quarter] GDP, neither lower imports nor lower exports are signs of economic vitality, either here or overseas", said Joshua Shapiro, chief economist at Maria Fiorini Ramirez Inc., said in a note to clients. The effects of the General Motors strike clearly showed up in the report with both exports (- 2.9%) and imports (-3.3%) of motor vehicles/parts registering sizeable declines. It suggested trade could add to GDP growth in the fourth quarter after being a drag for two straight quarters. In a third report, the Labor Department said initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 203,000 for the week ended November 30, the lowest level since mid-April. As of the end of October, the US has imported $382.1 billion of goods in 2019, compared with $447.2 in the first 10-months of 2018.

Figures on worldwide trade can be volatile from month to month.

Big picture: The U.S.is on track to record the biggest annual trade deficit in 11 years. US stocks were trading lower amid a lack of new developments in U.S.

"One of the reasons the fourth quarter is going to be weak, we believe, is probably a significant inventory adjustment, which might be as much as half a percent or more of GDP growth", Kaplan said in an interview with CNBC last week.

The company, the US arm of shipping equipment supplier China International Marine Containers Group Ltd., cut 62% of its employees earlier this year due to the slowdown, bringing its total staff to 140 in California and Virginia.

Recommended News

  • Pirates kidnap 19 crew members of Greek tanker off Nigeria

    Pirates kidnap 19 crew members of Greek tanker off Nigeria

    In a further statement, the IMB said the gulf region made up 86% of hostage-taking of crew members and 82% of crew kidnappings. The vessel was carrying crude for Indian refiner Hindustan Petroleum Corp, a source at the company told Reuters.
    Keanu Reeves girlfriend keeps her grey hair for a reason

    Keanu Reeves girlfriend keeps her grey hair for a reason

    Womxn is an intersectional phrase that is used to be more inclusive of non-binary women, transgender women and women of colour. Alexandra Grant is not conforming to beauty standards, and she is encouraging other women to do the same.
    China to sanction United States  organizations after law passed on Hong Kong

    China to sanction United States organizations after law passed on Hong Kong

    They displayed a banner that read "Condemn U.S. hegemony invading Hong Kong and interfering in China's internal affairs". The city's finance chief warned Monday that Hong Kong is set to record its first budget deficit in 15 years.
  • Roma And AC Milan Ban Paper After Racist Headline

    Roma And AC Milan Ban Paper After Racist Headline

    All 20 Serie A teams recently got together to sign a letter urging fans to eradicate the racism that plagues Italian soccer . At the end of the day the racist problem is a big problem.
    Measles killed 140,000 in 2018, says WHO

    Measles killed 140,000 in 2018, says WHO

    The total number of laboratory-confirmed measles cases in England in 2018 was 971, more than three times the 259 cases in 2017. CDC researchers estimate that 19.2 million infants worldwide did not receive the first dose of measles vaccine in 2018.
    Woman seeks dismissal of lawsuit against Luke Walton

    Woman seeks dismissal of lawsuit against Luke Walton

    The Kings and the National Basketball Association launched a joint investigation into the allegations in April. Investigators tried to interview Tennant on multiple occasions, but she declined to participate.
  • Kent County Health Department offering free walk-in HIV testing

    Kent County Health Department offering free walk-in HIV testing

    The City of Laredo Health Department will be offering HIV testing all day on Monday. De Guia said the number of HIV cases has risen by 203 percent since 2010.
    Four dead after chase and shootout involving hijacked UPS truck in Florida

    Four dead after chase and shootout involving hijacked UPS truck in Florida

    Several police cars chased the UPS truck on a highway in Broward County before the truck became mired in traffic, video shows . Police in footage taken of the chase are then seen approaching the truck and opening fire into the vehicle, reports WPLG .
    Seahawks Playoff Picture: Chances and chances after the season

    Seahawks Playoff Picture: Chances and chances after the season

    There are problems across the board that have been mitigated at times this season by one area of the team bailing out the other. I'll cut them some slack for allowing Ravens QB Lamar Jackson to rush for 101 yards last week since he has done that all year.
  • Good things take time: Alia Bhatt on long shooting schedule of 'Brahmastra'

    Good things take time: Alia Bhatt on long shooting schedule of 'Brahmastra'

    Alia's mentor, Karan Johar, also made sure to extend her support to Shaheen by thanking the launch with her presence. Earlier, it was reported that Ranbir had asked Mahesh Bhatt Alia's hand in the marriage.
    Racing Point and Aston Martin could join forces in F1!

    Racing Point and Aston Martin could join forces in F1!

    Aston Martin's current majority stakeholder, Strategic European Investment Group, holds about a third of the company. Aston Martin launches its first SUV which takes input from a female advisory board to cater to women buyers.
    Blazers guarantee Melo's contract for rest of season

    Blazers guarantee Melo's contract for rest of season

    Anthony is averaging 16.9 points and 5.9 rebounds while shooting 44.8% overall and 38.7% from 3-point range in 31.0 minutes. Anthony has made an estimated $249 million in salary over the course of his National Basketball Association career.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.