Falling oil imports/record rising refined petroleum exports account for today's startling trade contribution to GDP

The Oil and Gas Journal reports here that September petroleum imports plunged to the 1995 level while September was a record month for exports of refined products:

Total petroleum imports for September registered a 16.3% drop from the prior year, averaging just below 8.4 million b/d, which was the lowest level since February 1995. Crude oil imports averaged 7.4 million b/d, down 6.7% over the same period, to the lowest September level in 18 years. Imports of refined petroleum products dropped 52.5% to average 1 million b/d, the lowest level for US Energy Information Administration records dating to 1981. Meanwhile, exports of refined products increased 18.4% from last year to nearly 4.3 million b/d, the highest September level on record and the third-highest exports level ever recorded.

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Imports are a subtraction from GDP, so the big drop in imports coupled with a big surge in refined petroleum exports in September no doubt contributed significantly to the net plus to GDP in the trade column of today's report.

The American Petroleum Institute reports separately here that imports of petroleum in 3Q2014 were 11.4% lower than in the same period in 2013.

The stock market remains very expensive as of the end of 3Q2014

Nominal GDP rose to a level of $17.5354 trillion annualized for 3Q2014, according to the advance estimate of third quarter GDP released today.

Total stock market capitalization had an approximate value of $24.9126 trillion on September 30, 2014.

The ratio of total market cap to GDP on the record date therefore comes to 1.421, down slightly from the 1.445 level which prevailed in 2Q.

The ratio was as low as 0.74 as recently as the end of 2008.

The stock market therefore was about 92% more expensive at the end of September 2014 than it was at the end of 2008, and became just 1.7% cheaper between the second and third quarters of 2014.

3Q2014 GDP Advance Estimate comes in at 3.5%: Deliberately underreporting imports right before the election?

The share contributed to GDP in today's report breaks down as follows:

Personal consumption of goods and services: 34%

Private domestic investment: 4%

Net from export trade: 37%

Government consumption: 23%

I don't believe the import number in the report, which was -1.7%!

What, did the weather close all the ports of entry during July, August and September and we didn't know about it?

Imports, of course, subtract from GDP, so this negative import number boosts the contribution made by exports to GDP.

The last time the import number was negative was in the advance estimate of 1Q GDP, at -1.4%.

You remember 1Q, right, the terrible winter months of January, February and March? But as we all know, that negative number became +0.7% in the second estimate, and +1.8% in the third and final report.

Also note that a surge in defense spending in the third quarter for the war against ISIS all by itself accounts for almost 19% of GDP in this report and 80% of the reported share of government consumption contributing to GDP.

Backing out that government spending on the war means the GDP number is more like 2.8%.

And economists had expected GDP to come in at 3%.