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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: zonder who wrote (49952)	1/14/2004 3:44:10 PM
From: Lazarus_Long	Read Replies (1) \| Respond to of 57110

I did buy a couple of Tommy Hilfigger & Polo Ralph Lauren sweaters today, Thank you. We noticed it. Trade Deficit Unexpectedly Drops as U.S. Exports Increase By ELIZABETH BECKER Published: January 14, 2004 ASHINGTON, Jan. 14 — The United States trade deficit shrank unexpectedly in November to $38 billion, the lowest deficit since October 2002, reflecting a rise in exports, especially of civilian aircraft. The decline, from $41.6 billion in October of last year, surprised most analysts and helped strengthen the dollar against the euro. Advertisement American exports increased around the globe — to China, Japan, Europe and Mexico. The rise in exports by 2.9 percent was credited in part to the weakness of the dollar, which has helped make American goods and services more competitive in price overseas. At the same time, the American imports remained relatively flat, with a small dip despite growing consumer demand. "On an underlying basis, we may have turned the corner and seen an end to constant rises in the trade deficit," said David Greenlaw, chief United States economist at Morgan Stanley. "In the short run we could see a widening of the trade gap, but the weakness of the dollar is definitely helping United States producers." He and other analysts said the trade figure could have had a significant impact on the nation's economic growth rate in the last quarter of 2003, raising their estimates to as much as 5 percent from 4.25 percent. Aircraft sales, which are occasional at best, accounted for at least half of the rise in American exports and was largely responsible for the decrease in the deficit with Japan to $5.7 billion from $6.4 billion. Over all, Asia was responsible for the biggest increase in purchases of United States products, especially China. In the face of growing discontent in the United States with its trade policies, which have become a campaign issue as well as the focus of new legislation, China reduced its deficit with the United States by nearly $3 billion in November. Agriculture products — soybeans and raw cotton — topped the list of American exports to China. At the same time, American imports of toys and apparel from China declined. The narrowing of the trade deficit helps bolster the dollar since it means the United States depends less on foreign financing of its current account deficit. Jun Tian, the minister counselor for economic policy at the Chinese Embassy in Washington, said at a forum today that he hoped that China's trade policy and its deficit with the United States would disappear from the presidential debate. "Why can't we create a win-win situation instead of finger-pointing," Mr. Tian said at the Center for Strategic and International Studies in Washington. He noted that the trade imbalance with China helped counterbalance the lack of saving in the United States. "The United States trade deficit has become the major channel for the U.S. to absorb foreign savings," he said. nytimes.com