Jump to content
one...two...tree

U.S. August Trade Deficit Falls to $59.1B

 Share

1 post in this topic

Recommended Posts

Filed: Country: Philippines
Timeline

By AP / MARTIN CRUTSINGER

(WASHINGTON) — The U.S. trade deficit edged down slightly in August, reflecting a drop in foreign oil from record levels. But the politically sensitive deficit with China increased as imports from that country hit an all-time high.

The Commerce Department said Friday the trade deficit declined by 3.5 percent in August to $59.1 billion. The deficit is expected to shrink even further in coming months as a severe economic slump in the U.S. depresses demand for oil and other imported goods.

America's foreign oil bill declined to $43.7 billion in August, down a record $7.3 billion from the all-time high of $51 billion in July. The drop reflected both lower shipments and oil prices.

The big decline in oil lowered total imports to $223.9 billion, the second highest level on record but down by 2.4 percent from the all-time high set in July.

U.S. exports totaled $164.7 billion, also the second highest level on record, but down 2 percent from the July record. Exports have been the standout performer this year keeping economic growth positive.

However, that could be about to change. A growing number of economists believe the renewed turbulence on Wall Street virtually guarantees the U.S. will fall into a recession this year. With the turmoil spreading to other countries, there is a growing worry about a global downturn.

The spreading economic malaise has put a damper on oil prices which surged to record highs in July but since then have fallen dramatically. Oil currently is currently trading around $83 a barrel, far below the record of $147 set in mid-July.

The declines in oil support the view of economists that the trade deficit will show further improvements in coming months, reflecting a lower oil bill and falling demand for other imported goods as the weak U.S. economy depresses demand.

For August, the deficit with China edged up by 1.8 percent to $25.3 billion, the second-highest imbalance on record, as imports from that country rose to an all-time high. The import gain reflected big increases in shipments of toys and games, cell phones and clothing as U.S. retailers stocked up for the holiday sales season.

So far this year, the trade deficit is running at an annual rate of $717.1 billion, up slightly from last year's deficit of $700.3 billion, which had represented the first decline after setting records for five straight years.

Even though the deficit is off its all-time highs, critics say the imbalances are still too high and are putting the country's economic future in jeopardy as the U.S. has to borrow billions of dollars from China and other nations to balance its books, and domestic companies close American factories to move overseas to take advantage of lower wages.

The Bush administration contends its free-trade policies are the only way to move forward in an increasingly global economy. Democrats argue that the administration has not done enough to protect American workers from unfair competition from China and other nations that they contend are not abiding by global trade rules in such areas as worker rights.

For August, the deficit with Canada, America's biggest trading partner, fell by 10 percent to $7.4 billion. The deficit with the European Union dropped 38.5 percent to $6.8 billion.

http://www.time.com/time/business/article/...1849331,00.html

Link to comment
Share on other sites

 

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
- Back to Top -

Important Disclaimer: Please read carefully the Visajourney.com Terms of Service. If you do not agree to the Terms of Service you should not access or view any page (including this page) on VisaJourney.com. Answers and comments provided on Visajourney.com Forums are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Visajourney.com does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. VisaJourney.com does not condone immigration fraud in any way, shape or manner. VisaJourney.com recommends that if any member or user knows directly of someone involved in fraudulent or illegal activity, that they report such activity directly to the Department of Homeland Security, Immigration and Customs Enforcement. You can contact ICE via email at Immigration.Reply@dhs.gov or you can telephone ICE at 1-866-347-2423. All reported threads/posts containing reference to immigration fraud or illegal activities will be removed from this board. If you feel that you have found inappropriate content, please let us know by contacting us here with a url link to that content. Thank you.
×
×
  • Create New...