12
May

U.S. Trade Deficit Increases Showing Signs of Rebounding Economy

Posted by Sara M. Varese

U.S. Exports and Imports both went up with U.S. Trade deficit increased to $40.4 billion, a 2.5% rise from February which is usually a sign that the economy is recovering because people are spending more. The dollar has strengthened and weakened against certain currencies.

Amongst many major currencies, the dollar has weakened which has caused increased manufacturing exports which seemed to make Wall Street happy, jumping 150 points on the Dow Jones.   However, some American manufacturers that compete with Chinese imports are discontent and are pressing for currency changes.

With the Euro, it has strengthened mainly due to Greece’s debt crisis; experts say that this will decrease exports to Europe and increase demand for European products such as automobiles.  However, the experts also predict that this shouldn’t be a threat to increased exports as long as the European economic situation doesn’t get much worse.

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