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To: Knighty Tin who wrote (191613)	9/12/2002 9:36:48 AM
From: Pacing The Cage	Respond to of 436258

Current Account Gap Hits New Record Sept. 12 abcnews.go.com — WASHINGTON (Reuters) - The deficit in the U.S. current account -- the broadest measure of trade with foreign countries -- expanded sharply to a new record in the second three months of the year, the government said on Thursday, as the recovering economy sucked in imports. The second quarter current account gap grew 15.6 percent to $129.96 billion, the Commerce Department said, up from $112.45 billion during the first three months of the year. The number far exceeded analysts' expectations of a $123.84 billion deficit. The dollar weakened on the report. The trade deficit on investment income grew a whopping 564.5 percent to a record $6.29 billion from $950 million the previous quarter. The overall deficit reflected a widening in the goods and services balance to a record deficit of $110.61 billion. Some analysts worry the size of the deficit is unsustainable and is at risk of a sharp correction, possibly triggering a fall in the dollar's value in foreign exchange markets. Following the news of a record current account, the dollar dipped slightly in Thursday's morning trade. But U.S. officials including Treasury Secretary Paul O'Neill say the deficit is a sign of the U.S. economy's strength and its attractiveness to foreign investors. Net foreign purchases of U.S. stocks were $11.4 billion for the quarter, down from $25.0 billion in the first three months of the year, Commerce said. U.S. stock markets have tumbled this year dragged down by uncertainty over the outlook of the U.S. economy and worries about corporate accounting.