Export Growth Boosts Economic Recovery

Exports surged to the highest level in nearly a year!  This surge of 2.5 percent in exports, allowed the 32.9 billion dollar trade deficit for October to fall by 7.6 percent below the September deficit of 35.7 billion.

The Associated Press today announced that “The U.S. trade deficit unexpectedly narrowed in October” and that “growing exports, boosted by a weaker dollar, are expected to boost demand for American manufactured goods in coming months and provide important strength to the overall economic recovery.”

They report that in the first 10 months of this year, the deficit is at an annual rate of $364.8 billion. That is about half the gap for the whole year in 2008.  The stock market in turn rose after the improved deficit was reported.  In mid-day trading, the Dow Jones industrial average was up about 81 points, for an increase of 0.8 percent.

However to temper that good news, the narrower trade deficit reflects the impact of the recession, which cut consumer demand for domestic and foreign goods.