MercoPress. South Atlantic News Agency

Third highest US trade deficit record

United States trade deficit last May was the third highest ever, reaching 41,84 billion US dollars, pushed by weak exports and record imports of oil.

The latest release of the US Commerce Department indicates that at this rate the 2003 trade deficit will be equivalent to 492 billion US dollar, well above the current record of 418 billion US dollars.

Exports in May increased 0,9% reaching 82,1 billion US dollars fuelled by strong sales of automobiles, machinery and industrial supplies, while imports grew 0,7% totalling 123,9 billion US dollars.

US analysts believe that in the coming months the trade deficit will begin to drop following the current depreciation of the US dollar, which makes imports dearer and promotes exports of American manufactured goods. Similarly the US 6,4% unemployment index, the highest in nine years, should also contract consumers appetite for imported goods.

Actually imports from Japan during May dropped 13,1% to 9,1 billion US dollars the lowest in twelve months, reducing the deficit to 4,5 billion US dollars the lowest in five years.

However the trade deficit with China increased from 9,45 billion US dollars in April to 9,86 billion US dollars in May.

Wholesale prices in the US increased 0,5% last June but if food and energy, the most volatile items of the index, prices actually dropped 0,1%, according to the US Labour Department.