April 12, 2006
30 Days Hath December....
This morning, I noticed that several major media outlets were talking about how the trade deficit is shrinking.
I'm asking readers (like you) if this is also what you glean from these numbers, provided by the Commerce Department.
January exports = $114.3 billion
January imports = $182.9 billion
Goods/Services deficit = $68.6 billion
February exports = $113.0 billion
February imports = $178.7 billion
Goods/Services deficit = $65.7 billion.
January/Februray deficit difference = $2.9 billion
Now this is being paraded around like it's good news.
Wouldn't one expect a drop in the monthly trade deficit totals if you use a month-to-month model because February is...well...3 days shorter than January?
Also, if you can rack up a deficit of $68.6 billion dollars in 31 days, shouldn't your deficit for 28 days be less than $65.7 billion for it to be considered "good news?"
I'm not an economist, so I thought I'd ask....