Sun, Feb 15, 2004 - Page 10 News List

US trade deficit reaches all-time high

PERSISTENT RISE The fact that the trade deficit shot up during the recent recession and even accompanied the decline in the dollar has confounded financial experts

NY TIMES NEWS SERVICE , WASHINGTON

For the month of December, the trade gap widened by 11 percent. Imports rose by 3 percent and were led by purchasers of capital goods and industrial materials.

Several economists found reason for optimism in the December report, saying that the weaker dollar was boosting exports as expected.

Manufactured exports increased by 3 percent last year after two years of decline.

"With the value of the dollar now at its 30-year average and economic growth picking up abroad, I expect growing export opportunities," said David Heather, chief economist of the National Association of Manufacturers.

For the full year, US imports rose by US$98.3 billion from 2002, with industrial supplies, petroleum products, consumer goods and capital goods leading the list.

Exports grew by US$30.9 billion, with industrial supplies, consumer goods, foods, feeds and beverages accounting for the increase.

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