Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Bio
X •  LinkedIn
   Bob Stein
Deputy Chief Economist
Bio
X •  LinkedIn
 
  The trade deficit expanded by $1.9 billion in May
Supporting Image for Blog Post

 
Implications:  The total volume of international trade – imports plus exports – increased 2.7% in May and is up 25.4% versus a year ago, right before the V-shaped recovery began.  We expect more increases in global trade in the months ahead, despite financial turmoil in Europe.  Recently, the trade deficit has been expanding again.  This means the return to solid growth in the US is trumping, at least temporarily, the impact of a lower dollar (versus several years ago).  The result is imports rising faster than exports.  While some may worry about this trend, during recent decades a rising trade gap has been associated with a strong domestic economy, not a weak one.  Moreover, as we explain more thoroughly in yesterday's Monday Morning Outlook, Americans generate much higher returns on the assets we own abroad – like direct investment in factories in emerging markets – compared to what foreigners earn on US-assets (such as Treasury securities).  As a result, the US has more of an ability than any other country to run significant and persistent trade deficits.

Click here to view the entire report.
Posted on Tuesday, July 13, 2010 @ 9:36 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
 PREVIOUS POSTS
Trade Deficits As Far As the Eye Can See
Wesbury 101 - "The Political Economy"
Brian on spending and taxes
Doubling Exports is a Low Hurdle
Brian's thoughts on the increase in the personal savings rate
ISM services index falls slightly to 53.8 in June
Get Real - This is Not 1932
Brian on the Illinois budget crisis
Brian discusses the June employment report
Payrolls fall 125,000 while unemployment rate drops to 9.5%
Archive
Skip Navigation Links.
Expand 20242024
Expand 20232023
Expand 20222022
Expand 20212021
Expand 20202020
Expand 20192019
Expand 20182018
Expand 20172017
Expand 20162016
Expand 20152015
Expand 20142014
Expand 20132013
Expand 20122012
Expand 20112011
Expand 20102010

Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.