|
U.S. trade deficit climbs
|
 |
November 20, 1996: 10:16 a.m. ET
September sees gap widen an unexpected 10.1 percent
|
NEW YORK (CNNfn) - The U.S. trade deficit laid an egg Wednesday, hatching the second-worst showing on record with a 10.1 percent gain in September.
Costly oil imports and weak overseas sales of commercial aircraft helped widen the gap between exported and imported goods and services to $11.3 billion, second only to July's all-time high of $11.6 billion, the U.S. Commerce Department reported Wednesday.
The September figures may appear disappointing, but Deputy Treasury Secretary Lawrence Summers said a look at the long-term is more encouraging.
"The longer-term trend is that we've got a remarkably competitive economy," Summers said on CNNfn's "In the Game."
"The American economy has grown so much more rapidly than economies in Europe or Japan, and that's led to increases in our imports," he added, interpreting increased imports as a sign of strength rather than weakness.
The trade gap's expansion surprised Wall Street economists who had forecast a slight narrowing to $9.5 billion, believing that the slowing U.S. economy would dampen demand for foreign goods. In August, the trade gap was $10.3 billion.
Politically controversial trade again caused the U.S. trade gap with China to swell to $4.7 billion in September, while the U.S.-Japan deficit posted a mild decline to $4.8 billion.
Summers attributed the China gap in part to Asian businesses that have shifted production out of other popular production spots such as South Korea.
Commerce reported that the total exports of goods and services dropped 1.4 percent in September to $68.8 billion, while imports increased to $80.1 billion. The U.S.' cumulative trade deficit for the third quarter of the year hit its highest point in almost nine years, it added. 
|
|
|
|
|
|
U.S. Commerce Dept.
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
