MercoPress. South Atlantic News Agency

US record trade deficit

United States trade deficit reached an unexpected 55,8 billion US dollars in June, 19% increase over the previous month and well above the 47 billion anticipated by markets.

Exports actually fell by 4,3% to 92,8 billion the largest drop since September 2001 while imports rose 3% to 148,6 billion US dollars, reflecting the growing oil prices and Chinese record sales.

Market analysts are concerned about the impact of the latest figure in the US dollar and in the second quarter GDP which would undoubtedly be reflected in the overall performance of the US economy.

The situation is also a challenge for President George Bush aspirations to a second term just a few days away from the Republican Party convention at the end of August.

Data released this Friday also showed that US consumers are less confident about economic prospects. The Michigan University Index of Consumer Sentiment fell from 96.7 to 94 in August apparently reflecting softer employment, record oil prices and the continued threats to security.

Analysts are also surprised by the drop in US exports which had been growing steadily supported by the competitive edge of a weaker dollar and stronger demand from the Euro zone and the Far East.