U.S. Current Account Deficit Hits Record

[AlCzervik]

Tuesday March 14, 11:22 am ET
By Martin Crutsinger
America's Current Account Deficit Hits Record of $804.9 Billion in 2005; Feb. Retail Sales Dip
WASHINGTON (AP) -- America's deficit in the broadest measure of international trade surged to an all-time high of $804.9 billion last year as the country went deeper into debt to foreigners.
The Commerce Department said the deficit in the current account was up 20.4 percent from the previous record of $668.1 billion set in 2004. The current account is the best measure of trade because it tracks not only goods and services but also investment flows between countries.

In other economic news, retail sales for February fell by 1.3 percent, the biggest setback in six months. There were big declines in sales of autos, clothing and furniture as cold weather during the month kept shoppers away from the stores.

In January, retail sales had surged by 2.9 percent, the biggest monthly increase in more than four years, as the warmest January in more than a century lured shoppers to the malls. Analysts had expected a drop in February activity due to colder weather although the decline was bigger than the 0.9 percent decrease they had expected.

Analysts, however, discounted much of the February decline, saying it simply reflected a payback from the January jump in sales.

"A big headline drop was always in the cards after the weather-assisted surge in January, which hugely boosted retail activity," said Ian Shepherdson, chief U.S. economist at High Frequency Economics, a private consulting firm.

more at link
http://biz.yahoo.com/ap/060314/economy.html?.v=7&printer=1

[DBoon]

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