Latest US Trade Deficit NumbersI can't wait to see the positive spins on these numbers!!!!!!
Trade gap widens to new record in September
Last Update: 8:32 AM ET Nov. 10, 2005
The U.S. trade deficit widened by 11.4% in September to a record $66.1 billion, the Commerce Department said.
A surge in energy imports needed after Hurricanes Katrina and Rita laid waste to the energy infrastructure along the Gulf Coast in September boosted imports. At the same time, a strike a Boeing Co. sharply cut the number of airplanes exported in the month.
Even though economists had anticipated these factors, the trade deficit in September was well above expectations. Economists surveyed by MarketWatch expected the deficit to widen to $61.5 billion. See Economic Calendar.
The August trade deficit was revised slightly to $59.3 billion from the initial estimate of $59.0 billion.
The September trade data will be a drag the third quarter GDP growth rate, initially reported at a 3.8% annualized rate. The deficit for September is above government estimates that were included in the growth estimate. A larger trade deficit by itself would dampen growth. But the drag from the trade sector is likely to be offset by a faster pace of inventory growth in the third quarter than the government initially estimated.
Imports rose in September while exports had their largest decline since 9/11.
Imports rose 2.4% to $171.3 billion in September. Exports fell 2.6% to $105.2 billion.
Exports of goods alone fell 4.3% to $73.4 billion. The largest drop came in exports of capital goods, which fell 7.4% to $29.1 billion. Exports of civilian aircraft fell 72% to $925 million.
According to Boeing, only two planes were delivered in September, down from 25 in August due to the strike.
Imports of goods alone rose 2.7% to $144.5 billion. All categories on imports rose except autos. Imports of industrial supplies, including natural gas, fuel oil and other petroleum products rose 6.2% to $46.9 billion.
The petroleum deficit widened 6.8% to a record $22.2 billion.
The value of U.S. oil imports fell to $16.0 billion in September from $17.2 billion in August. The price of a barrel of oil rose to a record $57.32 in September, but the quantity of crude oil imports fell to 278.5 million barrels, the lowest since February 2003.
The trade deficit with China widened to a record $20.1 billion in September from $15.5 billion in the same month last year. The trade gap with China rose to $146.3 billion in the first nine months of the year, up from $114.3 billion in the same period last year.
The U.S. also set record trade deficits with Canada, South/Central America and OPEC.
In a separate report, the Labor Department said jobless claims rose slightly in the latest week