·
The US current account deficit fell
further last quarter to $178.5 billion from $188.9 billion in Q2, a
figure that was revised slightly shallower. The Q3 deficit was shallower
than Consensus expectations for a deficit of $183.3 billion.
· The latest deficit totaled 5.1% of GDP and it peaked as a percentage of GDP nearly two years ago at 6.8% in Q4 2005.
· That shrinkage occurred as the deficit on merchandise trade improved slightly $199.7B from Q2's deficit of $204.2B and from its deepest shortfall a year ago of $219.9B During the last year only, exports grew 10.0% and outpaced the 4.4% y/y growth in imports.
· The effects of the lower U.S. dollar
and the strength of foreign economies versus the U.S. is apparent most decisively
in the surplus in services trade. It improved markedly to a record
surplus of $26.5B from $25.8B in 2Q. Exports of services during the last
year alone grew 14.3%. Travel exports grew 17.7% y/y, passenger fares
were up 10.9% and freight shipping grew 11.3%. Import growth, conversely
was contained to 9.2% due to moderate 7.7% growth in travel, 4.8% growth
in passenger fares and a slight 1.4% advance in private freight
transportation.
· Foreign trade zones from the Federal Reserve Bank of Minneapolis can be found here.