|
Trade deficit widens
|
 |
January 21, 1999: 9:03 a.m. ET
Record imports cause gap to grow to $15.5B in November, above estimates
|
WASHINGTON (CNNfn) - Record imports caused the U.S. international trade deficit to rise in November to $15.5 billion from a revised $13.6 billion in October, exceeding the $15 billion forecast of analysts.
The deficit reported by the U.S. Commerce Department is the biggest since the $16.7 billion gap reported for August.
The October figure was revised up from the $14.2 billion originally reported for the month.
November imports increased to a record $94.2 billion from the $93.8 billion posted in October. Exports fell to $78.7 billion from the $80.2 billion reported a month earlier.
Deficits with both China and Japan declined. The deficit with Japan slimmed to $5.8 billion from $6.0 billion, while the gap with China narrowed to $5.0 billion from $5.5 billion.
Because of the numbers, "GDP for the first quarter will be somewhat smaller than expected," Sanwa Bank senior economist Takanobu Igarashi tells CNNfn, believing they will fall below the 2.5 percent generally forecast. He also says that "a recession is coming in the second half of this year," saying that current stock prices and negative savings rates are unsustainable.
Treasury prices rose in response to the report. The U.S. 30-year bond was up 19/32 to 101-23/32, yielding 5.13 percent. Prior to the 8:30 a.m. EST release, the bond was up 7/32. 
|
|
|
|
|
 |
|
