TRADE DEFICIT HITS $68BILLION !

[Anonymous]

Trade Deficit Hits $68 Billion Record in July
WASHINGTON
(Sept. 06) – The U.S. trade deficit hit a record $68 billion in July as
surging global oil prices pushed America’s foreign oil bill to the
highest level in history.
The
Commerce Department reported Tuesday that the July deficit jumped 5
percent from the June imbalance. Analysts had expected the deficit to
worsen slightly, but the overall imbalance was worse than expected and
surpassed the old monthly record of $66.6 billion set last October.So
far this year, the deficit is running at an annual rate of $776
billion, putting the country on course to rack up a record annual
deficit for the fifth straight year. Democrats, campaigning for control
of Congress in the November elections, hope voters will view the
soaring trade deficits as evidence that President Bush’s trade policies
are not working.For July, U.S. exports, after setting a string of
records, edged down 1.1 percent to $120 billion – still the second
highest level in history. Sales of American jetliners, computers and
food products all slipped.Imports rose to a record high of $188
billion, an increase of 1 percent from the June level. America’s
foreign oil bill climbed 4.8 percent to an all-time high of $28.5
billion, reflecting record oil prices in July.The politically sensitive
deficit with China did decline slightly in July to $19.6 billion but is
still on track to far exceed last year’s $202 billion deficit, the
highest ever recorded with a single country.Treasury Secretary Henry
Paulson will leave later this week for an Asian trip that will take him
to China for his first meetings with Chinese economic officials since
he joined the Bush’s Cabinet in July.The administration is pushing
China to move more quickly to allow its currency to rise in value
against the dollar as a way to narrow the yawning trade gap by making
American exports cheaper in China and Chinese goods more expensive for
U.S. consumers.

[Author]

September 19, 2006 at 11:07 AM