
Add to Favorites \| Editor's Note			Saturday 16th of December 2006 05:24:00 AM

Oil import amplifies US deficit gap

by Jyoti Pal - October 15, 2006 - 0 comments

Soaring exports of U.S. jetliners and total U.S exports hitting an all-time high were not good enough to keep the U.S. trade deficit from rising to a historic high in August. The reason can be attributed to surging global oil prices which have sent America's foreign-oil bill through the roof.

Reply

Your name: *

E-mail: *

The content of this field is kept private and will not be shown publicly.

Homepage:

Subject: *

Comment: *

[quote=Jyoti Pal]<div class="flexinode-body flexinode-1"><div class="flexinode-textarea-1"><div class="form-item">
 <label>Teaser: </label>
 <p>Soaring exports of U.S. jetliners and total U.S exports hitting an all-time high were not good enough to keep the U.S. trade deficit from rising to a historic high in August. The reason can be attributed to surging global oil prices which have sent America's foreign-oil bill through the roof.</p>
</div>
</div><div class="flexinode-image-3"><div class="form-item">
 <label>Picture: </label>
 <img alt="Oil import amplifies US deficit gap" src="http://www.themoneytimes.com/filess/oil import_sm.jpg" /><br /><a href="http://www.themoneytimes.com/filess/oil import.jpg">Get original file (6KB)</a>
</div>
</div><div class="flexinode-textarea-2"><div class="form-item">
 <label>Full Article: </label>
 <p>The Commerce Department reported that the trade deficit rose by 2.7 percent to $69.9 billion. It reported that U.S. companies imported more computers, consumer goods and oil even as they shipped a record amount abroad. The report was read as good news by some U.S. economists, as it showed that consumer spending is holding up even as the economy slows.</p>
<p>Jim O'Sullivan, a senior economist at UBS Securities in Stamford, Connecticut said, “Strength in imports is typically associated with strong domestic demand…both imports and exports are growing solidly lately, which very broadly is a sign of growth.'' </p>
<p>Further analysis revealed that the deficit with China widened to $22 billion, up from the previous record of $20.5 billion reached in October 2005. Imports from China increased to an all-time high of $26.7 billion in August whereas U.S. exports to the Asian nation fell to $4.8 billion. The U.S. lawmakers blame an undervalued Chinese currency to be unfairly helping China’s exporters.</p>
<p>The value of crude oil imports rose to $27.2 billion during the month primarily because of increase in the average price per barrel from $64.84 to $66.12. Prices have fallen now and may help reduce the deficit in future. The decline in energy prices during August have come too late and have not helped to make a big difference in the trade balance during the month.</p>
<p>A weaker dollar, which makes American goods cheaper overseas, bodes well for America. It should help pulverize down the U.S. trade deficit in the coming months.</p>
</div>
</div></div>[/quote]

Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
Lines and paragraphs break automatically.
You may quote other posts using [quote] tags.

More information about formatting options

Captcha Validation: *

Please type in the letters/numbers that are shown in the image above.

Navigation

Subscribe

Oil import amplifies US deficit gap

Reply

Active forum topics

Poll

Health Updates from TheMedGuru