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Chinese imports boost US trade gap
Fewer aircraft shipments contributed to falling export figures |
The US trade gap rose to a near-record $24.41bn in September.
The increase was fuelled by rising imports, high oil prices and a widening gap with China which was the largest with any country on record.
The Commerce Department said the result of a booming economy which had resulted in an unprecedented $106.11bn-worth of imports.
This overshadowed the level of exports which fell to $81.71bn as aircraft shipments declined.
China's 'record' deficit
US trade officials were particularly critical of a widening trade deficit with China.
Chinese imports surged to an all-time high of $8.22bn, boosting the deficit to a record $6.90bn.
But officials said a trade agreement signed on Monday between Washington and Beijing should boost exports to China over time.
The agreement calls for China to open a wide range of markets to US companies and paves the way for Beijing to join the World Trade Organization.
Imbalance 'levelling off'
September's trade gap rose from $23.55bn in August, but was just below the record $24.89bn deficit set in July.
Analysts, who had been expecting a slightly wider $24.5bn trade gap, said the imbalance may be levelling off.
They pointed to a sharp rise in oil prices and increased shipments of industrial supplies and materials.
Imports of cars and parts fell, while shipments of consumer goods and food were flat.
Despite September's decline, analysts said exports had improved in recent months. They attributed this to a recovery in Asian markets and an increase in shipments to Canada and Mexico.
"What it tells us is the rest of the world is picking up," said Paul Kasriel, chief domestic economist, Northern Trust.
"And there's every reason to expect that the rest of the world is going to grow into the new year, and that means that our exports are going to grow."
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15 Nov 99 | The Economy |
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China drops trade barriers |
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