Monday, October 19, 2009

U.S. exports are rebounding (7)

Another update in a series. September data on outbound container shipments from two very large ports was a little weak, but still (as I read it) consistent with a continued rise in overall U.S. goods exports. The dollar has been weak enough for long enough to give some boost to exports, though I would hasten to add while falling currencies may temporarily boost a nation's exports, a falling currency inevitably leads to higher inflation and overall economic decline. Regardless, I think the main story here is that global demand has rebounded, not that U.S. exports are suddenly more attractive. An improving global economic outlook is a very positive backdrop for any economy at this juncture.

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