Trade deficits narrows to 9-month low in October

[FBaggins]

WASHINGTON (AP) -- The U.S. trade deficit fell to its lowest level in nine months, as growing demand for American goods overseas pushed exports to their highest level in more than two years.

The Commerce Department says the trade deficit narrowed to $38.7 billion in October. The figure was 13.2 percent below September's deficit of $44.6 billion.

U.S. exports rose 3.2 percent to $158.7 billion, the highest level since August 2008. Sales of American-made machinery, farm products and autos fueled the growth. Imports dipped 0.5 percent to $197.4 billion, with lower demand for oil and foreign-made cars.

[Mortos]

1. Wow! Something good is happening under President Obama

I didn't think we were allowed to point out positive things during "his" administration here anymore.

Oh yeah, this is economic good news so it must mean someone is getting screwed.

[Davis_X_Machina]

2. This is a sign of *slowing* economic growth. It's *not* a good sign. n/t

[FBaggins]

3. A shrinking trade gap is *not* a sign of a slowing economy.

A slowing economy can (and has) created a smaller trade gap, but it doesn't work the other way around.

In this case, the smaller gap was largely created by a gain in exports, which is clearly a good thing. The suprisingly good number also means that Q4 GDP is set to improve (which of course is the opposite of "slowing economic growth").

[Davis_X_Machina]

4. The reduction in energy imports...

..absent a big improvement in efficiency or domestic production, is a troubling, leading indicator.

[FBaggins]

5. ...isn't an issue absent an ongoing trend.

Bloomberg surveyed several dozen economists for predictions on this series' release. The number came in better than any of them had expected.

Hard to spin that as bad news. But feel free to try. :)

[Davis_X_Machina]

6. We'll see...

...continued growth equals increased energy demand equals increased energy prices equals recovery throttled in its crib.

$4.00/gal gas will guarantee a double dip.

[FBaggins]

7. So by that formula... More Growth = "Slowing Economic Growth"

Yeah... that makes sense.

But thanks for playing.

[Davis_X_Machina]

8. That's the bind we're in.

Any really robust recovery contains the seeds of the its own destruction. The Japanese lost decades, bad as they were, weren't set against the background of peak oil.

[FBaggins]

9. Sorry... I didn't realize that we were discussing religious beliefs.

How insensitive of me.