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To: Defrocked who wrote (63178)	9/21/1999 8:48:00 AM
From: Cynic 2005	Respond to of 86076

Somebody has to do the dirty job! -g- They can easily find the bright-spot in the trade numbers and rally! -s- ------------------ September 21, 1999 -------------------------------------------------------------------------------- Trade Gap Widens to $25.2 Billion On Strong Demand for Imports Dow Jones Newswires WASHINGTON -- The U.S. trade deficit surged again in July, rising to a record $25.2 billion as a flood of imports continued to outpace exports of goods abroad. For the second straight month, imports of goods and services from abroad topped $100 billion, reaching $104.2 billion. Exports rose modestly in the month, to $79.04 billion. The number suggests the American penchant for imported goods was unabated at the start of the third quarter. Financial markets are likely to take the news badly. The number implies an even worse current-account deficit in the third quarter and that domestic consumption is still running strongly. The U.S. dollar, which dropped sharply last week after news of the record $80.67 billion current account deficit in the first quarter, could fall again. The dollar has been particularly weak recently against the Japanese yen, which has strengthened on the prospects of economic recovery after years of stagnation. The figures will also trouble the Federal Reserve, which has hiked short-term interest rates twice since late June in an attempt to slow the economy down to a more sustainable pace. The trade figure confirms other reports that have shown gains in retail sales and lower inventories, all signs that consumption has not slowed, despite the rising rates. Analysts had expected the deficit to decline for the first time since April. In a survey of economists by Dow Jones and CNBC, the median estimate called for the trade gap to shrink to $23.7 billion. The June trade gap was revised downward slightly, to $24.60 billion. The figure had initially been reported at $24.62 billion. The growth of the deficit was primarily due to import growth outpacing growth in exports. Imports of goods and services rose 1.0%, their seventh straight gain. While some of the gain was due to increased oil imports, as had been expected, other import sectors also posted increases. Imports of civilian aircraft and consumer goods rose sharply in the month. Seasonally unadjusted figures for imports of crude petroleum products rose to $4.44 billion. The unadjusted amount per barrel gained $1.49 to $16.01, its highest level since December 1997. A glimmer of good news in the report was the 0.5% gain in exports. It was the first time since April that exports had grown, and confirmed other signs that demand for U.S. goods overseas may finally be picking up again after dropping off last year in the wake of the Asian financial crisis. The export gain was led by growth in the capital goods sector, including semiconductors, medicinal equipment and drilling and oilfield equipment. Consumers goods exports also posted a small gain, while exports of autos and auto parts fell in July. On a bilateral basis, in seasonally unadjusted figures, the trade gaps with most of the major trading partners of the U.S. swelled. The gap with China moved up to a record $6.31 billion in July, mostly on the strength of $7.39 billion in imports from there. The gap may complicate negotiations over China's entrance into the World Trade Organization. The U.S. has called for increased openness to China's markets for foreign goods. Exports to China totaled $1.08 billion in July. The trade gap with Canada increased to a record $3.29 billion, up from the revised $2.57 billion seen in June. The deficit with Japan also widened in July, surging to a record $6.78 billion from June's $6.28 billion figure. The gap with the 11 nations using the Euro currency also advanced, rising to $5.28 billion in July from $3.85 billion in June. The sole major exception to the increased gap was with Mexico. The trade deficit with Mexico narrowed to $2.11 billion, as imports from there outpaced a drop in exports.