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U.S. trade numbers released this morning show that the country is exporting more, and importing less.Exports increased to $153.3 billion, a 1.8% rise, while the overall trade deficit fell 14.8% to $42.8 billion in July.
While the increase in exports is positive, the fall in imports might be somewhat alarming.
Imports declined by 2.1% to $196.1 billion for the month of July.
What this means is that U.S. consumers are spending less and paying down debt, which fits in with the deleveraging thesis that has now become common opinion.
This would make the U.S. economy, if it can continue to successfully grow its export industry, or deleveraging expands, more like the Germans and the Japanese, which both run a trade surplus.
Here are the details of America’s new deleveraging phenomenon >
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