Getting More Trade Balanced

From the Bureau of Economic Analysis/U.S. Census

U.S. imports and exports continued their slide in January, with the result of narrowing the trade deficit by 9.7 percent.

The numbers are not particularly surprising given the global recession, and a shrinking trade gap can be a good thing. However, there is some eyebrow-raising to be had in the fine print.

Exports of "automotive vehicles, parts and engines" dropped $2.18 billion in January, to $5.5 billion — down 46 percent from a year ago and the lowest level since July 1998. Yet another indication of just how hard the auto industry has been hit.

Imports of the same dropped $3.29 billion in January to $11.52 billion, also the lowest level since July 1998.

One bright spot is exports of "food, feeds and beverages," which grew $131 million in January. It seems the meat and poultry industry, in particular, has weathered the storm reasonably well so far: exports of those products were up $79 million over December 2008 and $84 million over the past year.