Trade Deficit Narrowed, so is the Economy on the Mend?
The rule of thumb for recessions is that the greater the recession the greater the recovery. While this “recovery” has been ongoing since the summer of 2009, remnants of the Great Recession linger on.
Offering a glimmer of hope last month was a better than expected contraction in the trade deficit. On Wednesday, December 4, the Commerce Department reported the trade gap in September fell 5.4% to $43.0 billion. This was due to exports from the U.S. hitting a record high because of an increase in global demand. This suggests the economy is improving. The October deficit report is projected to report another drop in the deficit to $41.0 billion.
In theory, with a global economy improving, the transportation industry should reap the benefits of increased trade.
