NYT/AP: Trade Deficit Rose in June as Oil Imports Hit Record High

[DeepModem Mom]

Trade Deficit Rose in June as Oil Imports Hit Record High
By THE ASSOCIATED PRESS
Published: August 12, 2005


WASHINGTON (AP) -- America's trade deficit increased sharply in June as surging oil prices pushed petroleum imports to an all-time high. The politically sensitive deficit with China also set a record.

The Commerce Department reported that the imbalance between what America sells abroad and what it imports rose to $58.8 billion in June, an increase of 6.1 percent from the May deficit of $55.4 billion.

So far this year, the trade deficit is running at an annual rate of $686 billion, 11 percent higher than last year's all-time record of $617.6 billion. The trade performance has presented President Bush with a political headache as critics have charged that the soaring imbalance represents the failure of the administration's free trade policies.

The June deficit came as U.S. exports of goods and services rose by $52 million to a record of $106.8 billion, reflecting higher sales of telecommunications equipment, aircraft engines and chemical fertilizers.

Imports, however, rose a much larger $3.44 billion to also set a record at $165.7 billion, reflecting an increase in both the price and volume of petroleum shipments and higher imports of toys, clothing and other consumer goods....


http://www.nytimes.com/aponline/business/AP-Economy.html

[bemildred]

1. U.S. Trade Deficit Swelled to $58.8 Billion in June (Update1)

Aug. 12 (Bloomberg) -- The U.S. trade deficit widened more than forecast in June to $58.8 billion, as a strengthening economy prompted companies to import more expensive crude oil and a record amount of goods from China.

The gap in goods and services trade swelled 6.1 percent from $55.4 billion in May, the Commerce Department said today in Washington. Imports rose 2.1 percent to an all-time high $165.7 billion. Exports were up 0.1 percent.

Record energy costs this month and an accelerating economy suggest little prospect for improvement in the trade gap for the rest of the year, economists said. Crude oil prices increased 13 percent on average in June, and retail sales rose as consumers bought more foreign-made apparel and appliances. Companies also imported more equipment to replenish inventories.

``We're still in a situation where the deficit is going to widen again,'' said Michael Moran, chief economist at Daiwa Securities America Inc., who forecast a $58.3 billion June trade gap. ``We need to see stronger growth in foreign countries and a softer dollar, and we haven't seen enough on either front to see sustained improvement in the deficit.''

http://quote.bloomberg.com/apps/news?pid=10000103&sid=aShyl2ea6v.c&refer=news_index

[ozymandius]

2. Yo know this deficit will just keep going up

as long as people have money to spend.

[papau]

3. CNN/Money: Trade gap grows

Trade gap grows
Government reports increase in U.S. deficit with trading prices in June as oil prices rise.
August 12, 2005: 8:43 AM EDT

NEW YORK (CNN/Money) - The U.S. trade gap grew in June, according to a government report Friday that came in wider than Wall Street expectations.

The Commerce Department reported that U.S. imports outstripped exports by $58.8 billion in June, the third largest deficit in history. That was up from a revised $55.4 billion gap in May. Economists surveyed by Briefing.com had forecast the gap to widen to $57.2 billion in the month, due to the rise in the price of imported oil.<snip>

The trade gap with China, by far the largest deficit with any single trading partner, rose to $17.6 billion from $15.8 billion in May.

The trade gap was somewhat limited by a slim rise in U.S. exports to a record $106.8 billion from $106.7 billion in May.

http://money.cnn.com/2005/08/12/news/economy/trade/index.htm?cnn=yes