zimv20
Apr 12, 2005, 07:02 PM
link (http://nytimes.com/2005/04/12/business/12cnd-trade.html?hp&ex=1113364800&en=0df790b13a9cfad2&ei=5094&partner=homepage)
The United States trade deficit expanded in February for the third month in a row, reaching a record $61 billion, as rising oil prices coupled with America's hunger for foreign goods pushed imports to unprecedented new heights.
The Commerce Department reported today that even as imports ballooned to $161.5 billion, $2.6 billion more than in January, exports remained nearly flat at $100.5 billion.
Despite a substantial drop in the value of the dollar against leading currencies like the euro, and the Canadian dollar, which have made American products more competitive in some overseas markets, exports in February were just 8.7 percent higher than in February 2004, whereas imports expanded by 16.8 percent.
Rising oil prices were responsible for a big part of the increase, as petroleum and petroleum products accounted for two-thirds of the monthly rise in imports. Nonetheless, imports of goods besides oil rose 0.6 percent, to a record $117.4 billion.
"Certainly there was an oil price effect," said Joseph Abate, economist at Lehman Brothers. "But it's not just an oil thing. In real terms the trade balance continues to deteriorate."
The large trade deficit was expected to weigh down on the dollar, but it pretty much ignored the trade figures and rose against the euro, as traders in financial markets concentrated on the prospect for higher interest rates in the United States.
But as the trade balance continues to deteriorate relentlessly, despite the weakening of the dollar over the past two years, many executives, policymakers and economists have turned to blame China for a good portion of the deficit.
The United States trade deficit with China -the nation's largest bilateral deficit-narrowed to $13.9 billion in February from $15.3 billion in January, tempered by the Chinese New Year festivities in mid-February that reduced factory output. Still, imports of Chinese textiles and clothing rose nearly 10 percent.
(more)
i remember some speculation on this board that the falling dollar would raise exports and perhaps start to close the trade gap. looks like the good isn't coming with the bad.
The United States trade deficit expanded in February for the third month in a row, reaching a record $61 billion, as rising oil prices coupled with America's hunger for foreign goods pushed imports to unprecedented new heights.
The Commerce Department reported today that even as imports ballooned to $161.5 billion, $2.6 billion more than in January, exports remained nearly flat at $100.5 billion.
Despite a substantial drop in the value of the dollar against leading currencies like the euro, and the Canadian dollar, which have made American products more competitive in some overseas markets, exports in February were just 8.7 percent higher than in February 2004, whereas imports expanded by 16.8 percent.
Rising oil prices were responsible for a big part of the increase, as petroleum and petroleum products accounted for two-thirds of the monthly rise in imports. Nonetheless, imports of goods besides oil rose 0.6 percent, to a record $117.4 billion.
"Certainly there was an oil price effect," said Joseph Abate, economist at Lehman Brothers. "But it's not just an oil thing. In real terms the trade balance continues to deteriorate."
The large trade deficit was expected to weigh down on the dollar, but it pretty much ignored the trade figures and rose against the euro, as traders in financial markets concentrated on the prospect for higher interest rates in the United States.
But as the trade balance continues to deteriorate relentlessly, despite the weakening of the dollar over the past two years, many executives, policymakers and economists have turned to blame China for a good portion of the deficit.
The United States trade deficit with China -the nation's largest bilateral deficit-narrowed to $13.9 billion in February from $15.3 billion in January, tempered by the Chinese New Year festivities in mid-February that reduced factory output. Still, imports of Chinese textiles and clothing rose nearly 10 percent.
(more)
i remember some speculation on this board that the falling dollar would raise exports and perhaps start to close the trade gap. looks like the good isn't coming with the bad.
