MercoPress. South Atlantic News Agency

Record US trade deficit in October

The United States trade deficit last October increased almost 9% reaching a record 55,5 billion US dollars totalling 500, 5 billion US dollars during the first ten months of 2004, reports the US Department of Commerce.

The twelve months US trade deficit in 2003 was 496,5 billion US dollars.

The October deficit was far higher than expected by Wall Street that had forecasted 53 billion US dollars following the 50,9 billion of September.

Imports in October reached 153,5 billion US dollars particularly because of oil purchases at an average 41,79 US dollars the barrel.

US October oil demand from OPEC countries reached 9,5 billion US dollars.

Another important component of the overall deficit was China's surplus in bilateral trade with the US reaching 16,8 billion US dollars. US imports from China expanded 3,4% last October while US exports increased 0,6%.

The Chinese surplus is an irritating factor for Washington since the Yuan is artificially pegged to the US dollar meaning that a cheaper greenback has no effect on bilateral trade, contrary to what happens with the European Union and Japan.

US Department of Commerce also released October's consumer price index increase, 0,6% which analysts believe will further expand 0,2% in November.

Industrial production during November expanded 0,3% as forecasted, particularly because of a good showing in the mining sector with a 2,1% growth. However the November industry's expansion figure is below the 0,6% of October.

Industry during November operated at 77,6% capacity, the highest since May 2001, and above the 77,5% of the previous month of October.