According to the advance GDP release (4/29/20), the U.S. economy contracted by 4.8 percent during the first quarter of 2020. Though not as bad as the 8.4 percent quarterly decline that occurred during the Great Recession, performance in the second quarter could be even worse.

Growing U.S. oil and gas production and lower oil prices have reshaped U.S. petroleum trade. Although the United States still runs a deficit, the average monthly trade deficit through August 2015 is only $7.6 billion, compared to $35.1 billion through August 2008. This improvement is largely driven by imports.

There is a tendency to view China’s 1.9 percent devaluation of the Yuan on August 11 through the lens of the U.S. dollar. After all, the Yuan has been fixed or closely linked to the greenback for decades, and Washington has been among the most vocal critics of China’s currency policy. However, currency and trade data suggest that China’s devaluation has more to do with the other currencies.

According to official data, the U.S. aerospace industry generated a trade surplus of $56.4 billion in 2012, the largest of any manufacturing industry. Exports are important to the domestic industry, with almost half of all domestic aerospace production exported. In addition, the Commerce Department found that the aerospace industry supports more jobs through exports than any other industry.

The deficit for petroleum products has declined by approximately $41 billion while the deficit for non-petroleum products has expanded by approximately $10 billion. This suggests that increased U.S. production of energy, not improved productivity or in-sourcing, is the main driver of the change in U.S. trade flows thus far in 2013.