Manufactured Goods Trade Balance improves.
Press Release Summary:
According to trade data released by U.S. Department of Commerce, U.S. deficit in manufactured goods trade fell dramatically in February, to $23 billion, 44% smaller than $42 billion deficit last February. The $19 billion improvement in manufactured goods trade deficit from last February was as large as improvement in petroleum trade balance, and accounted for about half of overall gain in U.S. balance of trade in goods and services.
Original Press Release:
Manufactured Goods Trade Balance Improves As Imports Fall More Than Exports
Shrinkage in Manufactured Goods Deficit Accounts for Half of Total Gain
Washington, D.C., April 9, 2009 - Trade data released by the U.S. Department of Commerce today show the U.S. deficit in manufactured goods trade fell dramatically in February, to $23 billion, 44 percent smaller than the $42 billion deficit last February. The $19 billion improvement in the manufactured goods trade deficit from last February was as large as the improvement in the petroleum trade balance, and accounted for about half of the overall gain in the U.S. balance of trade in goods and services.
"The sharp improvement in the manufactured goods trade balance resulted from the fact that while exports of manufactured goods fell 23 percent from last February, imports of manufactured goods fell an even faster 30 percent," said National Association of Manufacturers (NAM) Vice President for International Economic Affairs, Frank Vargo.
February's manufactured goods deficit is the smallest since December 2001. The shrinkage in the manufactured goods deficit is strongly related to the decline in the U.S. economy - particularly in consumer goods and automobiles.
While down sharply from a year ago, the February decline in seasonally-adjusted manufactured goods exports was marginally less than the decline in January, meaning that exports grew slightly over the last month.
"While this is a welcome development, it is too early on the basis of one month's data to determine that the precipitous export slide that began last September is over," said Vargo. "February imports of manufactured goods, however, continued their rapid decline. U.S. Free Trade Agreement partners remained the brightest spot in manufactured goods trade. In 2008, U.S. manufactured goods trade with free trade partners as a group (NAFTA, CAFTA, Chile, Singapore, and the others) was in surplus by $21 billion. The manufactured goods deficit with countries with which we do not have bilateral trade agreements, remains in deficit by over $300 billion."
The National Association of Manufacturers is the nation's largest industrial trade association, representing small and large manufacturers in every industrial sector and in all 50 states. Headquartered in Washington, D.C., the NAM has 11 additional offices across the country. Visit the NAM's web site at www.nam.org for more information about manufacturing and the economy.
CONTACT: MATTHEW PREISS (202) 637-3150
