The Nation's international deficit in goods and services increased to $66.1 billion in September from $59.3 billion (revised) in August, as imports increased and exports decreased.
Exports decreased to $105.2 billion in September from $108.0 billion in August. Goods were $73.4 billion in September, down from $76.7 billion in August, and services were $31.8 billion in September, up from $31.3 billion in August.
Imports increased to $171.3 billion in September from $167.3 billion in August. Goods were $144.5 billion in September, up from $140.8 billion in August, and services were $26.8 billion in September, up from $26.6 billion in August.
As of this month, the cumulative 2005 trade deficit total is 530 billion, or 86% of last years total. The chances of another year of a record trade deficit are pretty high.
Some of this is caused by September's hurricanes, which closed a major port and increased US oil imports. That means next month's number will probably decrease. But, don't expect a miracle. Next month's number will not magically drop to an acceptable level.
In case you are wondering, this isn't a good thing. The Republicans are now saying this is a sign the American economy is performing better than other countries. While this is technically a true statement, it overlooks the problem which is the US is not exporting nearly enough and/or is too reliant on other countries for products. Considering the over-reliance on housing for economic expansion, this shouldn't really come as a surprise.
In addition, the Republicans are dealing with the problem as if it is someone else's fault. They are attempting to influence other countries to adopt more US-like policies of increased consumer consumption. They are not addressing the 2.8 million loss of manufacturing jobs in the US over the last 5 years in any way. Not are they doing anything to encourage national savings. So long as we spend until there is no way to incur any more debt, we're fine.
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