US trade deficit at its narrowest for over 6 years

The US trade gap is at its narrowest since 2002 as the latest data is expected to show that trade inflows are slowing as a result of the recession with the US trade deficit expected to reduce to $35.7 billion from $40.4 billion in November, the lowest since 2002.

A government report revealed today that the recession has pushed oil and consumer spending lower, as well as reducing imports, which is a reflection of just how weak the domestic economy is.

The benefits of trade to the US economy has been lost and is likely to remain negligible for the near future and according to John Herrmann, president of Herrmann Forecasting LLC, the longer this is set to continue the stricter the calls for protectionism.

The tone has already been set as many US firms are now lobbying for the call to buy American goods amid continued news of further job losses.

As a sign of the deepening recession, the US gross domestic product is forecast to fall again this quarter after a 3.8 percent annual drop at the end of 2008, which marks the lowest since 1982.

Consumer spending, which accounts for a round 70 percent of the US economy, also experienced a reduction as the nation sets up to send its way out of recession as President Barack Obama sets forward the latest stimulus plan.

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