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Showing posts with the label trade deficit

Trade Deficit Shows Need to Improve Exports

The Commerce Department stated on Tuesday that the trade gap increased in September 7.6% to $43.03. It is much larger than the estimated $38.1 billion. It is believed that an improving GDP will lend to improvements in exports but this not what happened. The results may be long-term or short-term but do reflect a need for the U.S. to adjust its policies to return to a higher exportation status unseen since a generation ago. Exportation is a solid reflector on internal capacities of a nation to meet market demands. Much of the recent decline is associated with global economic factors much outside the control of the U.S. The biggest losses were a 6.5% decline in exports to the European Union, 3.2% to China, and 14.7% to Japan. The losses seem to reflect lower economic activity in all three regions of the globe and may simply be a factor of total consumption.   That doesn’t mean the country can’t improve its export capabilities. Outside of a slower global economy are two major

Congressional Report Highlights Reduced Deficit With Looming Long-Term Problems

The Federal Deficit shrunk in 2014 by $170 billion according to the Congressional Budget Office. The report also argues that future problems with budgets may occur if federal laws relating to taxes and spending remain unchanged. The next few years look bright for the federal deficit and the labor market which will lose some slack as higher corporate profits push for expansion and the rehiring unemployed workers. The positive news comes with significant long-term risks where proactive solutions are needed. A 15% increase in spending on Medicaid and a 5% increase in Social Security are putting pressure on the budget. Revenue is expected to increase 6% for individual income tax, 8% for payroll tax and 15% for corporate taxes to help release some that budget pressure. The increased revenue and high costs will have an impact on spending priorities. Federal deficit held by the public will increase to 74% which is the highest since 1950. Additional debt held by the public will ri

New Economic Indicators Point to an Improved U.S. Business Climate

The economy is picking up steam with positive markers in trade, manufacturing, consumer confidence and service industry growth. Multiple markers help encourage positive feelings among consumers and investors alike. As the market continues to show positive signs it will naturally influence the available purchasing habits of consumers and opportunities of investors.   Even though the positive signs are only blips on an economic radar they do lean toward potential new growth in the near future. America is making its way back to global dominance as the trade gap narrows and worldwide demand for American products ticks slightly upward.   It is a small start…but it is a start. According to new numbers from the Trade Department the trade gap shrank 3.6% to $40.4 billion dollars from the prior month of $41.9 billion ( 1 ). This small adjustment in the trade gap highlights that there is some potential momentum in the market.  Exports increased 2.1% to $193.9 billion in March ( 2 ).