US trade deficit surges to a record $68bn in July

Wednesday, September 13, 2006 7:24:02 AM ET
newratings.com

NEW YORK, September 13 (newratings.com) – The US trade deficit widened to a record $68 billion in July due to the rising demand for foreign goods and services, and the continued rise in oil prices. The trade gap increased 5% on a month-on-month basis, according to the latest official data.

The country’s total trade deficit in the current year is running at an annual rate of $776 billion, the Commerce Department said. The US is likely to post a record annual deficit for the fifth consecutive year, the department added.

According to a report by the Commerce Department, US exports dropped for the first time in the past four months, largely due to a $1.2 billion decline in the sales of US capital goods, mainly civilian aircraft, computers, computer accessories, and industrial machinery. Total exports during the month were down 1.1% to $120 billion, which was still the second highest level in US history. The country’s imports surged to a record high of $188 billion during the month, an increase of 1% over the June figure.The figures revel that the country’s foreign oil bill increased 4.8% to a record high of $28.5 billion due to a sharp rise in oil prices in July. The US deficit with China declined 0.7% to $19.6 billion during the month.

http://www.newratings.com/analyst_news/ ... 67025.html


BUY AMERICAN!