Import-Export Prices Rose in October; Jobless Claims Down in Week

Export prices stood at a two-year high, rising for the third consecutive month in October, up 0.8%, while import prices advanced 0.9% in October after edging down 0.1% in September, the Labor Department reported Wednesday. Exports were more expensive largely due to a 2.5% rise in agricultural prices such as corn, soybeans and cotton. The import price increase came largely from a 3.0% jump in fuel prices, while the main contributor to the price jump in nonfuel imports was a 1.9% rise in prices for non-fuel industrial supplies and materials along with a 1.1% price jump in food and beverages.

Also on Wednesday, the U.S. Commerce Department said that the nation’s international trade deficit in goods and services fell by 5.3% to $44.0 billion in September as exports increased and imports decreased. Total September exports of $154.1 billion and imports of $198.1 billion resulted in the smaller goods and services deficit. September exports were $0.5 billion more than August exports of $153.6 billion while September imports were down 1%, or $2.0 billion less than August imports of $200.1 billion.

Finally, the U.S. budget deficit came to $140.4 billion last month versus $176.4 billion in Oct. 2009, thanks to increased tax receipts, according to the Treasury Department’s budget statement. For the fiscal year ended Sept. 30, however, the government reported its second-largest annual budget deficit on record. The Congressional Budget Office estimates the deficit this fiscal year will exceed $1 trillion for a third time.

Overall, there is “no new reality since last week,” Naroff said. “Let’s face it, fiscal policy will have no impact in 2011. It takes too long for changes in fiscal actions to be transmitted [to the markets]. Even if the Republicans didn’t take control of the House, it’s doubtful that the Democrats would have had the stomach for any more stimulus programs after the feedback from the populace. What will be different over the first six or nine months of next year in Congress other than a lot of ranting, raving and posturing and people saying they’re going to create jobs and cut the budget?”