U.S. Trade Deficit Hits $66 Billion, Another Record > United States

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U.S. Trade Deficit Hits $66 Billion, Another Record

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작성자 VIKAS BAJAJ 작성일05-11-10 20:17 조회1,847회 댓글0건

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The trade deficit widened by 11 percent and set another record in September, the government reported today, as exports of airplanes plummeted because of a strike at Boeing and imports of natural gas and petroleum products surged in the weeks after Hurricane Katrina struck the Gulf Coast. The deficit with China also hit a record.

Farm Issues Stall Talks for a Deal on Trade The United States imported $66.1 billion more in goods and services than it exported in the month, breaking the previous record set in February when the economy registered a $60.4 billion deficit, the Commerce Department reported. The trade deficit in the first nine months of the year totaled $529.8 billion, about 18 percent higher than at this time in 2004.

Economists had been expecting the trade balance to widen to $61.5 billion in October, according to a survey by Bloomberg News.

"One-third of the widening of the deficit is the oil bill, and aircraft sales explains most of the rest," said Carl Weinberg, chief global economist at High Frequency Economics, a research firm. "It"s a little superficial."

In the aftermath of Katrina, which hit New Orleans at the end of August, gasoline and natural gas imports spiked because much of the domestic production and refining in the Gulf Coast was shut down. Natural gas imports surged 30 percent, to $3.7 billion, and petroleum products and fuel oil jumped 22.8 percent, to $6.8 billion.

Crude oil imports, however, fell by $350 million, reflecting the shutdown of refineries in the Gulf Coast because of damage from Katrina and later from Hurricane Rita. A large oil import terminal off the coast of Louisiana was also shut down for several days in September because of hurricane damage.

In an indication that the surge in energy imports is easing, the Labor Department reported today that the price of petroleum-based imports fell 4.4 percent in October after surging 8 percent in September. The price of all imports dropped 0.3 percent, only the second month this year that it has fallen, after rising 2.3 percent in September. Excluding petroleum products, import prices rose by 0.8 percent in October.

The United States" trade deficit with China, the largest with any single country, rose 8.8 percent, to $20.1 billion. Exports to the country fell 17 percent and imports rose by 4 percent.

Earlier this week, American and Chinese government officials reached a deal to restrict textile imports from that country for the next three years. The Bush administration and Congress have also been pressing China to allow its currency, the yuan, to appreciate against the dollar, which would make American exports more attractive in China and Chinese imports less so.

The Chinese government reported today that its October trade surplus with the rest of the world jumped to a record $12 billion in October. So far this year, the booming country has amassed a surplus of $80.4 billion, up from $32 billion at this time last year.

All told, exports to all countries fell by $2.8 billion, virtually all of it because of falling airplane sales. That is largely a result of a machinists" strike at Boeing, which forced delayed the shipment of 30 planes, according to the company.

Exports of food fell $296 million, reflecting transportation delays caused by the shutdown of the Port of New Orleans, from which many agricultural products are shipped.

Imports rose $4 billion, most of it from industrial supplies and materials, a broad category that includes energy products. Imports of consumer goods, food and capital goods rose slightly, but the country brought fewer cars and car parts from overseas in September.

Mr. Weinberg said he expected the trade deficit to narrow in the coming months and next year as aircraft sales pick up again and energy prices continue their retreat; oil and gasoline prices are already below where they were immediately before Katrina struck. Just this week, Boeing projected an 11.7 percent increase in revenue in 2006 on higher airplane deliveries.

But other economists were less sure of an improvement in the trade balance, noting that imports may rise as American businesses restock depleted inventories. "The trend is not going to be that great if imports are picking up in momentum," said Joshua Shapiro, chief United States economist for MFR Inc., a research firm in New York.

Separately, the Labor Department reported that claims for unemployment benefits rose by about 2,000, to 326,000 last week. Compared to the same week last year, claims were down by about 5,000.

And the University of Michigan reported that its consumer confidence index rose after falling for three straight months, edging up to 79.9 this month, up from 76.5 in October.


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