- WASHINGTON (Reuters) - The
U.S. trade gap jumped nearly 10 percent in August to a record $38.46 billion,
as exports fell for the first time in six months and demand for foreign
consumer goods pushed imports to their highest level since March 2001,
the government said on Friday.
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- The trade gap exceeded the average forecast of $35.58
billion made by analysts surveyed before the Commerce Department report.
Excluding the U.S. surplus for services trade, the deficit for goods was
$42.27 billion, also a record.
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- The sharp increase in the deficit renewed analyst concerns
that it could eventually trigger a sharp drop in the dollar, although there
was little initial reaction in currency markets as traders focused on stocks
instead.
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- "It looks like funding the current account may become
a bigger issue," Eric Nickerson, chief currency strategist at Bank
of America in New York.
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- Analysts worry that the ballooning current account deficit,
which is the broadest measure of trade because it also includes investment
flows, is at risk of a disorderly correction which could trigger a slide
in the value of the dollar.
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- However, U.S. officials have repeatedly said they are
not worried about the current account deficit, calling it a sign of the
United States' economic strength and its attractiveness to foreign investors.
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- U.S. imports increased a healthy 2 percent in August
to $120.31 billion. Imports of consumer goods such as pharmaceuticals,
televisions, furniture and household appliances were a record $26.66 billion.
Imports of services were also a record at $20.06 billion.
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- The monthly bill for oil imports increased to $7.33 billion
in August, from $6.82 billion in July, as average prices rose to $24.57
per barrel -- the highest level since the December 2000 level of $26.40.
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- U.S. exports fell to $81.86 billion, down 1.3 percent
from July, as the major export categories of capital goods, foods, feeds
and beverage, autos and auto parts and consumer goods all showed declines.
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- Jay Bryson, global economist with Wachovia Bank in Charlotte,
North Carolina, said the jump in the trade deficit was a "surprise"
after its narrowing in July.
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- "It appeared that exports of civilian aircraft were
down $1 billion, after being up $1 billion the month before," Bryson
said. "Crude oil imports were up, which is not a surprise because
oil prices were rising."
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- "The way to look at these data is to take July and
August together. That way, the average is nearly $37 billion per month.
That is high, but when you smooth out the monthly volatility, August's
numbers no longer look like a blowout."
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- The United States bilateral trade deficit with two of
its largest trading partners, China and Mexico, also set records in August.
The trade gap with Mexico increased to $3.48 billion, from $3.37 billion
in July. The deficit with China rose to $10.86 billion, from $9.34 billion.
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- The trade deficit with OPEC countries increased sharply
in August to $3.68 billion as the average price for a barrel of oil hit
$24.57, the highest since the December 2000 level of $26.40.
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