As usual, whenever the monthly U. S. jobs reports and the monthly U. S. trade reports come out on the same day, the latter get overshadowed. Partly this is because the trade data is released with a two-month time lag, versus one month for employment. But it’s also partly because, despite all the paeans offered to globalization and its blessings by the political, business, and media establishments, the trade figures have become so depressing that they’re considered best neglected in hopes that Main Street won’t notice.
So chances are you haven’t yet read or heard that the overall January trade shortfall increased 2.19 percent on month, from $44.70 billion to $45.68 billion. Or that this January combined goods and services deficit was the highest since August’s $50.54 billion. These figures aren’t adjusted for inflation, so it’s tough to tell exactly how much of a drag on economic growth they’ll produce, but all the signs keep pointing to one that will keep getting bigger and bigger.
Also noteworthy: That portion of the trade deficit most heavily influenced by trade deals and related trade policies – the non-oil goods deficit – also hit its highest level in pre-inflation terms ($57.76 billion) since August ($59.29 billion). So did its inflation-adjusted counterpart.
This post was published at Wall Street Examiner by Alan Tonelson ‘ March 4, 2016.
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