Finance Matters

Posts Tagged ‘exports’

The Commerce Department has revealed US exports hit an all-time high in July, while imports fell.

According to official figures, exports surged 3.8% to $178 billion (£111 billion) after two months of declines.

The rise in exports was attributed to strong overseas sales of manufactured goods, particularly to countries in Central and South America.

Meanwhile, imports fell 0.2% to $222.8 billion – attributed to the decline in the price of oil reducing the cost of the US’s crude imports.

As a result of the figures, the trade gap fell 13.1% to $44.8 billion.

Meanwhile, US’ politically sensitive trade gap with China swelled 1.1% to $27 billion – the biggest imbalance in almost a year.

President Barack Obama has previously said that he wants to double US exports in the next three years to drive employment so the figures will be a welcome boost.

Yesterday, the President addressed the nation about a plan for job creation. He unveiled a $450 billion (£282 billion) package aimed at boosting the economy and reducing the federal deficit.

The bill includes tax cuts to workers and small businesses to boost job creation.

Mr Obama has previously said job creation is a top priority; continued high unemployment could threaten his prospects for re-election next year.

Last week, the Labor Department revealed the economy added no new jobs last month, which was a surprise after markets had expected 70,000 new jobs.

This represented the first time since 1945 that there has been a zero payrolls figure after 17,000 jobs were added in the private sector last month but these were cancelled out by 17,000 jobs lost in the public sector.

The economic recovery in the US remains sluggish in the face of higher unemployment and a depressed housing market.

In related news, yesterday the latest Beige Book report, published by the Federal Reserve revealed widespread signs that US economic growth continues to slow.

The US central bank has previously said the economy is weaker and that policymakers will explore ways to boost growth and lower unemployment at its policy meeting later this month.

The Cabinet Office has today revealed the world’s third largest economy performed worse than originally thought in the April to June period.

Gross Domestic Product (GDP) contracted by 2.1% on an annual basis in the three-month period, compared with an initial estimate of 1.3%.

The fall was attributed to a cut back on spending by companies amid concerns about a slowing global economy and a strong yen.

Earlier this week, Japanese Finance Minister, Jun Azumi, said he will discuss the threat of the strong yen at the G7 meeting in Marseille, France today.

Meanwhile, figures released today revealed overall investment by businesses fell by 0.9% in the quarter, against 0.2% rise estimated previously.

The economy is currently in recession and has now contracted for three consecutive quarters.

The economy continues to recover from the devastating earthquake and tsunami which struck in March.

A strong yen continues to hurt Japanese manufacturers. Furthermore, the twin disasters disrupted supply chains and forced some of Japan’s largest exporters to halt production.

Exports helped the economy recover from recession earlier than its counterparts two years ago but recent figures have shown exports are slowing.

Yesterday, the Organisation for Economic Cooperation and Development (OECD) said Japan could see economic growth of 4.1% in quarter three but will see zero growth in the final quarter.

However, despite today’s poor figures, which were in line with expectations, economists are optimistic about the future prospects.

Government stimulus spending is expected to boost the recovery efforts in north-eastern Japan, while consumer spending will lead to expansion in the next quarter.

Japan lost its place as the world’s second largest economy to China last year and it faces several headwinds including years of deflation and a mountain of debt.

Debt currently stands at almost twice the country’s annual economic output and is the highest of any industrialised nation.

Statistics office Destatis has today revealed German exports and imports fell in July – more than expected. According to Destatis, exports fell by 1.8% in July on a monthly basis compared with a 1.2% drop in June. Economists had forecast a 0.1% fall for the month. The sharp fall in exports will be of grave [...]

Manufacturing activity in China grew for the first time in four months in August, two separate surveys have revealed. Firstly, the official China Federation of Logistics and Purchasing (CFLP) said its purchasing managers’ index (PMI) edged higher to 50.9 last month from July’s reading of 50.7. The index remains just above the crucial 50 level, [...]

Manufacturing activity in China grew for the first time in four months in August, two separate surveys have revealed. Firstly, the official China Federation of Logistics and Purchasing (CFLP) said its purchasing managers’ index (PMI) edged higher to 50.9 last month from July’s reading of 50.7. The index remains just above the crucial 50 level, [...]