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| October Import Prices, September Trade Data (#1) - Nov. 10, 2005 |
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Summary
This morning's release of October import price data and September trade data from the Labor Department and the Commerce Department, respectively, again produced disquieting numbers. In the case of the trade data, Labor reported a September deficit of $66.1 billion, the largest monthly shortfall in history -- and the largest by a wide margin, too!
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October Import Prices
This morning's release from the Labor Department indicated that overall import prices fell 0.3% during October, good news on prima facie examination. However, prices excluding petroleum imports rose 0.8% during the month, on top of September's revised 1.0% increase.
Import prices for petroleum were down 4.4% in October, following a revised 8.0% rise in September.
Year over year, the price of all imports rose 8.1%. Excluding petroleum imports, the figure was 3.7%, tying December 2004's 3.7% rise for the highest year-over-year increase during the last several months. To find a higher result, you must go all the way back to August 1995, when import prices, excluding petroleum, were up 4.0 year over year.
September Trade Results
This morning's release from the Commerce Department indicated that the nation's trade deficit (goods and services) in September rose to a record $66.11 billion, up $6.76 billion or a whopping 11.4% from a revised August deficit of $59.35 billion. (August's shortfall was originally reported as $59.03 billion.)
Hurricane Katrina had an important negative impact on September exports, which were down almost $2.8 billion or 2.6% from August.
The September deficit not only set a record, it eclipsed the former record by a very substantial $5.69 billion, or 9.4%! The top three reported monthly deficits now are:
September 2005 $66.11 billion
February 2005 $60.42 billion
June 2005 $59.49 billion
In September, the value of crude oil imports actually was down almost $1.9 billion from August.
For 2005's first nine months, the trade deficit totaled $529.793 billion, an increase of $81.433 billion or 18.2% from 2004's comparable figure.
As is customary, I will publish a more detailed analysis of both of these key economic series.
NOTE: A recent death in the family will cause my work schedule to fall behind a bit over the next few days.
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