|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
Tuesday 02nd of December 2008
July 12, 2006

US trade deficit up


by Elaine Frei

The US trade deficit was higher in May than it was in April, but still came in lower than had been anticipated by analysts. The increase from April to May was entirely due, according to reports, to the higher cost of crude oil, which was $4.92 per barrel higher in May than it was in April. In the absence of that rise in prices, the deficit would have been $3.9 billion lower in May than in April.

The May deficit was up 0.8 percent to $63.8 billion. It has been expected to hit $64.9 billion. Meanwhile, exports of goods and services were up 2.4 percent in May, to $118.7 billion. Exports of civilian aircraft, consumer goods, and industrial supplies and materials were up, while the export of vehicles, parts and engines were down during the month. Analysts said that the increase in exports relative to imports was a sign that the US economy is slowing down as domestic demand drops.

The May trade deficit with China was up to $17.7 billion. The growing US debt to China has been behind recent calls from Congress and the Bush administration for China to revalue its currency.

The total trade deficit for January to May of this year is at $317.9 billion, putting it on track to exceed the $716.7 billion record trade deficit in 2005.

Discuss this in the Finance Markets forums

Story link: US trade deficit up


Add to Bookmarks:

ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL

 

 

Previous: « Tokyo markets down on tech stocks
Next: Yen weakens ahead of Bank of Japan meeting »

Visited 378 times, 1 so far today