|08-13-2004, 09:22 PM||#1|
Angling in the Deep
Join Date: Oct 2003
Location: Texas Riviera, Southern Mountains
U.S. Trade Gap at Record
Another strong indicator showing how well the ecomony is NOT doing.
By Tim Ahmann
WASHINGTON (Reuters) - The U.S. trade deficit widened much more than expected in June, hitting a record $55.8 billion on the biggest drop in exports in nearly three years and record imports, the government said on Friday.
Separate reports showed producer prices largely under wraps last month and consumer sentiment eroding in August.
Wall Street economists had expected the trade gap to grow, but looked for a deficit of just $47 billion. Instead it jumped 19 percent, the biggest increase in more than five years.
Analysts said the unexpectedly large gap will lead the government to lower its reading of second-quarter economic growth, which it had put at a 3 percent annual rate in a snapshot late last month. Before Friday, economists had been thinking the GDP (news - web sites) figure would actually be bumped up.
"It's extraordinary, I've never seen this big a swing in one month," Kevin Logan, an economist at Dresdner Kleinwort Wasserstein in New York, said of the worsening trade picture.
|08-13-2004, 10:00 PM||#2|
Join Date: Jul 2001
Location: Hot Springs, Ouachitah
I guess that's good news for the political left. It never fails to amuse me when bad news is good news.