US Trade Stalls, Too

This is a syndicated repost courtesy of Alhambra Investments. To view original, click here. Reposted with permission.
US imports rose year-over-year for the seventh straight month, but like factory orders and other economic statistics there is a growing sense that the rebound will not go further. The total import of goods was up 9.3% in May 2017 as compared to May 2016, but growth rates have over the past five months remained constrained to around that same level. It continues to be about half the rate we should expect given the preceding contraction.
Though price effects are tailing off, there was again a large base effect distortion from crude oil. US imports were up significantly again in May, by 41.8%, meaning that imports ex petroleum rose by just 4.8%. For the five months of 2017 so far, non-crude imports have grown by just 5% over the same period in 2016. That’s far too much like 2013 and 2014.

This post was published at Wall Street Examiner by Jeffrey P. Snider ‘ July 6, 2017.