US, China, Canada trade figures reveal firm trends in global economy
11 Dec 2010
Trade data from China, the United States and Canada released on Friday show that global economy is firing on all cylinders. The United States, China and Canada have all reported strong trade figures for the October-November period with exports on the rise, indicating strong global demand and domestic economies on the mend.
For the US, export gains in October were broad-based, reflecting stronger sales abroad in industrial materials, food, autos and a large number of other categories.
A weak dollar and booming economies in what are termed as emerging markets have obviously helped US exports. US exports in October hit their highest level since August 2008, the month before the financial crisis sent economies around the world, particularly developed ones, into a tailspin.
US exports in October climbed 3.2 per cent from a month earlier, even as imports dipped 0.5 per cent, helping narrow trade deficit to $38.7 billion, the least since February.
The US's critical trade balance with China - which has great political ramifications - narrowed for the second month in a row, with the US importing less and exporting more. Market observers feel that the US economy appears to be headed in the right direction.
They have struck a warning note, however, saying that the trade gap is expected to widen once again in the coming months as US consumers insatiable appetite for imported goods appears to continue as strong as before.